GBP/USD Forecast: Bulls poised to challenge the 1.4000 mark

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3980

UK monthly GDP is foreseen at -4.9% in February, down from 1.2% in the previous month.
Industrial Production in the UK is foreseen contracting 4% YoY in January.
GBP/USD poised to extend its advance in the near term beyond 1.4000.

A weaker dollar helped GBP/USD reach 1.3986, its highest for this week, with the pair holding on to gains at the end of the American session. The pair surged on the back of sub-1.50% 10-year Treasury yields, as the latter fell to 1.475% ahead of the opening. The greenback remained under pressure despite the latter recovered to 1.52%.

The UK published the February RICS Housing Price Balance, which beat expectations by printing at 52%. This Friday, the kingdom will release January Industrial Production, foreseen at -4% YoY, and the monthly Gross Domestic Product, foreseen at -4.9% from 1.2% in January. The country will also unveil the January Trade Balance.

GBP/USD short-term technical outlook

The GBP/USD pair has room to extend its advance, as the 4-hour chart shows that it is developing above its 100 SMA for the first time in a week. The moving average remains directionless, but the 20 SMA advances below it. In the meantime, the Momentum aims to resume its advance while the RSI stabilizes near overbought readings, supporting a bullish continuation in the near-term.

Support levels: 1.3930 1.3890 1.3845

Resistance levels: 1.4000 1.4045 1.4090

View Live Chart for the GBP/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.