GBP/USD: Further weakness appears in store – UOB

Pablo Piovano FXStreet

UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang suggest GBP/USD still faces further downside in the near term.

Key Quotes

24-hour view: “Yesterday, when GBP was trading at 1.2370, we expected it to drop below 1.2350. However, we indicated that ‘the next major support at 1.2300 is unlikely to come into view today’. Our expectations were correct as GBP broke below 1.2350 and dropped to a low of 1.2308. While conditions are severely oversold, the weakness in GBP has yet to stabilize. Today, as long as GBP stays below 1.2375 (minor resistance is at 1.2345), it is likely to break below 1.2300. The chance of GBP reaching the next support at 1.2255 today is not high.”

Next 1-3 weeks: “We indicated yesterday that ‘the risk for GBP is still on the downside’. We added, ‘a clear break below 1.2350 will shift the focus to 1.2300’. In line with our expectations, GBP cracked 1.2350 and dropped to 1.2308. The weak phase in GBP started two weeks ago is still intact. In view of the oversold conditions, any further decline is likely to be at a slower pace and it remains to be seen if the next major support at 1.2175 will come into view this time around. It is worth noting that there is a shorter-term support at 1.2250. On the upside, a breach of 1.2415 (‘strong resistance’ level was at 1.2470 yesterday) would suggest the GBP weakness has stabilized.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college 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.