The GBP/USD pair trades near is weekly low of 1.5259, maintaining its bearish dominant tone below the 1.5300 figure. Having erased all of its post-elections gains, the British Pound has shed almost 250 pips this week, with no corrective movements in the way.
The market is waiting for the release of the US GDP figures, expected to reflect a deeper economic contraction in the US during the first three months of this 2015. In the meantime, the 4 hours chart shows that the 20 SMA has extended its decline down to converge with the 200 EMA, both around 1.5350, providing a strong intraday dynamic resistance. In the same chart, the technical indicators maintain a negative tone, with the RSI indicator heading lower around 32 and the Momentum indicator lacks direction in negative territory.
A disappointing reading in the US data can boost the pair up to the 1.5350/60 region, while an extension beyond this last exposes the pair to a test of the 1.5400 level. A downward acceleration below 1.5260 on the other hand, should see the pair accelerating its decline towards the 1.5200 region.
View live chart of the GBP/USD
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.