GBP/USD rebound from 1.2185 halts below 1.2250

GBP/USD recovery attempt from 1.2185 low, capped below 1.2240/50.
The pound remains vulnerable in concerns about Brexit and BoE interest rates.
The pair is testing the upper limit of the near-term downward trending channel.

Guillermo Alcala FXStreet

Sterling’s reversal from 1.2300 highs on Tuesday found support at 1.2185 earlier on Thursday although the ensuing recovery attempt remains capped halfway through Wednesday’s pullback, at 1.2240/50 resistance area.

Pound vulnerable on Brexit woes and BoE

The GBP/USD seems unable to take advantage of the recent dollar weakness. to stage a solid recovery. The investors are increasingly anxious about the pound on the lack of progress on the trade talks with the EU, which are boosting the chances of a no-deal Brexit. In the current context, of coronavirus shutdown, the consequences of an unfriendly exit from the Union might have a severe impact on the UK economy.

Against this backdrop, BoE Governor Andrew Bailey recognized on Wednesday that the Bank is considering introducing negative interest rates for the first time in more than 300 years of history. These comments have increased negative pressure on the GBP.

GBP/USD capped below trendline resistance

Four-hour charts show the GBP/USD pushing against downtrend trending resistance from April 30 highs, now at 1.2240/50, which is also a previous support level April 21, May 7 lows). The pair should break above there to increase bullish momentum, and aim towards the 1.2300 area (April 30 high) and then 1.2340 (May 13 high)

GBP/USD key levels to watch

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold slides below $5,000 amid USD uptick and positive risk tone; downside seems limited

Gold attracts fresh sellers at the start of a new week and reverses a part of Friday's strong move up of over $150 from sub-$4,900 levels. The commodity slides back below the $5,000 psychological mark during the Asian session, though the downside potential seems limited amid a combination of supporting factors.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.