Growth numbers from the second quarter in the UK were not revised. The pound weakened further after the report. The GBP/USD dropped to 1.5363 and remains below 1.5400 under pressure.
After being rejected from above 1.5700 and making a sharp reversal, the pair broke an uptrend line and dropped back to the previous trading range. Now testing a relevant support that capped the decline on July and worked as a resistance in the past. A break of the 1.5350 area should open the doors for further losses, with targets at 1.5300 and then around 1.5200. June lows should offer support.
The area around 1.5360 seems like a strong support from where a bounce to the upside is possible. So far the bounce from the lows has been limited. If it gains momentum it could rise to 1.5450/60; only above it could remove some of the bearish momentum and would open the doors toward 1.5500.
The pair is about to post the first close under the weekly 20-SMA; the negative signal could be offset if it manages to end above 1.5350. But anyway the outlook remains bearish after the reversal and the break of an uptrend line. A close on top of 1.5500 would remove strength to the US dollar.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.