The GBP/USD pair trades within a tight range around the 1.5600 level, having posted a daily low of 1.5587, still finding some buying interest but unable to pick up on broad dollar strength. There were no macroeconomic news in the UK, but the US calendar will be pretty busy, with the release of the Advanced GDP reading for the Q2 and a new figure, the Goods trade balance.
The 4 hours chart shows that the pair has managed to bounce from a bullish 20 SMA that advanced above a horizontal 200 EMA, this last, reflecting the lack of directional strength, whilst the RSI indicator heads higher around 56 and the Momentum indicator is flat above 100, keeping the risk towards the upside. At this point, the price needs to extend beyond the 1.5630 level to be able to advance towards 1.5670, albeit selling interest will likely cap the upside around this last.
Towards the downside, a downward acceleration through 1.5590 should lead to a test of 1.5550, whilst below this last, 1.5510 is the next bearish target for the day.
View live chart of the GBP/USD
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.