GBP/USD: supported by soft US data

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3072

The GBP/USD pair hovers a handful of pips below the 1.3100 level, having barely correcting the extreme overbought conditions reached last Friday. The Pound benefited from poor US data, with the pair triggering stops right above former yearly high of 1.3047, now the immediate support. In the data front, the UK released the Rightmove house price index at the beginning of the day, which showed that prices have risen 0.1% this month, and 2.8% per from a year earlier, better than the 04% decline in June, although the impact over the pair was inexistent. The 4 hours chart shows that the price continues developing far above a bullish 20 SMA, whilst technical indicators are turning back north near overbought levels, with limited directional strength, but favoring the upside anyway, as the early downward corrective movement stalled well above the 23.6% retracement of the latest bullish run at 1.3040. Below this last, the pair has scope to extend its downward corrective movement towards the 1.3000 threshold, while above 1.1315, an extension up to 1.3160 becomes more likely, en route to 1.3200.

Support levels: 1.3040 1.3000 1.2965

Resistance levels: 1.3115 1.3160 1.3200

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.