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 holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

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

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, 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 remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Week ahead: Data blitz, Fed Minutes and RBNZ decision in the spotlight

The US jobs report for January, which was delayed slightly, didn’t do the dovish Fed bets any favours, as expectations of a soft print did not materialize, confounding the raft of weak job indicators seen in the prior week.

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.