GBP/USD Forecast: Poised to lose the 1.3500 level

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3585

Pound was weighed by the latest restrictive measures in the United Kingdom.
The UK macroeconomic calendar has nothing to offer until next Wednesday.
GBP/USD is at risk of falling further and losing the 1.3500 mark.

The GBP/USD pair is ending the day little changed in the 1.3580 price zone but fell to a fresh one-week low of 1.3519. Weekend news related to more travel restrictions in the UK due to the coronavirus pandemic and the absence of relevant local data pushed the pound lower. On a positive note, the UK plans to speed up vaccination. Nadhim Zahawi, the Minister for COVID Vaccine Deployment, said that everyone in the UK would be offered a vaccine by September.

Meanwhile, the EU announced it would seek an extension to the deadline by which the free trade agreement with the UK must be ratified, from the end of February to later in April. The UK won’t release macroeconomic data this Tuesday.

GBP/USD short-term technical outlook

The GBP/USD pair is at risk of extending its decline in the near-term. The 4-hour chart shows that it’s struggling around its 100 SMA, while the 20 SMA heads lower above the current level. Technical indicators have bounced from daily lows, but remain within negative levels, lacking momentum. Further declines sub-1.3500 are expected on a break below the mentioned daily low.

Support levels: 1.3520 1.3465 1.3410

Resistance levels: 1.3615 1.3660 1.3710

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.