GBP/USD now faces resistance at 1.2525 ahead of 1.2600 – UOB

Pablo Piovano FXStreet

In light of the recent price action, GBP/USD is now expected to meet the next up barrier at 1.2525 seconded by 1.2600, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Our view of range trading in GBP was incorrect as it soared to a high of 1.2496. Strong upward momentum suggests further GBP strength and while it is likely to break above 1.2525, it might not be able to hold above this level. The next significant resistance level at 1.2600 is not expected to come into view today. On the downside, a break of 1.2445 (minor support is at 1.2470) would indicate that GBP is not strengthening further.”

Next 1-3 weeks: “Our latest narrative was from Monday (10 Apr, spot at 1.2425) wherein GBP is likely to consolidate between 1.2330 and 1.2520 for the time being. Yesterday (12 Apr), GBP soared to a high of 1.2496. Rapid improvement in momentum suggests GBP is ready to head higher. Resistance levels are at 1.2525 and 1.2600. On the downside, a break of 1.2400 (‘strong support’ level) would indicate that our view for a higher GBP is wrong.”

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 three-day lows near 1.1570

EUR/USD resumes its march south on Thursday, revisting the 1.1570 region, or three-day lows, ahead of the opening bell in Asia. The intense sell-off in the pair comes in response to the solid performance of the US Dollar amid the still unresolved crisis in the Middle East. Moving forward, investors are expected to shift their focus to the release of the US NFP on Friday.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

XRP rises as crypto market steadies despite Middle East war

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.