GBP/USD analysis: shy recovery not enough to confirm a temporal bottom

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3976

Pound remains out of market's favor, bounce triggered by USD weakness.
UK calendar with little to offer this Wednesday.

The GBP/USD pair posted a nice recovery from a fresh April low of 1.3917, as enthusiasm over the greenback faded on better developments in the stocks' markets. The UK released the CBI industrial Trend Survey on Orders for April, which came in at 4, against the expected 6, as the positive sentiment was backed by a cheaper Pound. The UK macroeconomic calendar has nothing to offer this Wednesday, while there are no fresh news about progress on Brexit negotiations. The Pound fell out of market's favor as first-tier data released last week disappointed big, while BOE's Governor Carney downplayed chances of a May hike. After the latest plunge, the GBP/USD pair is well below the 23.6% retracement of such slide, at 1.4025 and as long as below the level, chances are still to the downside. Technical indicators in the 4 hours chart have recovered from oversold territory, but remain below their mid-lines, while the 20 SMA extended its slide and its currently around 1.4000, also limiting chances of an upward extension.

Support levels: 1.3960 1.3920 1.3880

Resistance levels: 1.3990 1.4025 1.4060

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 holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.