GBP/USD analysis: shallow recovery reflects Pound self weakness

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3284

GBP benefited from easing risk aversion, but upside potential limited.
UK Nationwide House Price index and money figures to be out next London session.

The Pound benefited just partially from the improved market mood, rising against the greenback up to 1.3306, but being unable to settle above the 1.33 figure. The UK currency has been lately undermined by tepid macroeconomic data and rising concerns about future trade, as Brexit looms. The absence of relevant news these days has only helped Pound from plummeting further. This Thursday, the kingdom will release the Nationwide House Price index for May and April money figures, nothing that can rock the bases, but still a sign of the UK economic health. Technically, and in the short term, the risk remains skewed to the downside as in the 4 hours chart, the pair is unable to surpass its 20 SMA, hovering a few pips below it, while technical indicators continue heading nowhere within negative territory. The pair is holding barely 80 pips away from its yearly low ahead of a fresh catalyst, but today's behavior has shown that a recovery doesn't depend on dollar's weakness but on Pound's possible strength.

Support levels: 1.3245 1.3200 1.3160

Resistance levels: 1.3315 1.3350 1.3400

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.