GBP/USD Forecast: Waiting for a bullish breakout

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4187

UK Brexit Minister David Frost recognized that the UK failed to secure the wanted agreement.
UK Retail Sales are foreseen surging a whopping 36.8% YoY in April.
GBP/USD continues to depend on how investors see US inflation developments.

The GBP/USD pair bounced back, and trades near a daily high of 1.4189 as demand for the dollar receded. The market continues trading according to expectations of rising inflationary pressures in the US and how those could affect the Federal Reserve monetary policy. The favourite measures are government bond yields, which soared with FOMC Minutes on Wednesday, but quickly retreated to end Thursday near weekly lows.

UK Brexit Minister David Frost recognized that the UK failed to secure the Brexit agreement it wanted for Northern Ireland. The Irish Sea border is still causing difficulties to Irish producers with mounting tensions with France over fisheries. The market, however, seems to have already priced in the new Brexit “normal” and trades accordingly. The UK will publish April Retail Sales on Friday, expected to have increased by 4.5% MoM and 36.8% YoY. Markit will release the preliminary estimates of its May Services and Manufacturing PMIs for the kingdom.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral in the near-term, and needs to advance above 1.4219, the monthly high, to resume its advance. The 4-hour chart shows that the pair recovered above its 20 SMA, which heads higher, although technical indicators lack directional strength, the Momentum within negative levels and the RSI at around 61. The pair could turn bearish heading into the weekly close if it breaks below 1.4095, a strong static support level.

Support levels: 1.4140 1.4095 1.4065

Resistance levels: 1.4220 1.4260 1.4310

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 off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.