EURGBP – Fresh strength eyes key daily cloud top barrier at 0.8887

Slobodan Drvenica Windsor Brokers

EURGBP

The cross surged to nine-week high at 0.8850 today, on broadly weaker pound. The rally was also supported by technicals, completion of cup-and-holder pattern on the daily chart. The price action is showing strong scope for extension above thick daily cloud (spanned between 0.8549 and 0.8887), as fresh gains approached cloud's top at 0.8887 (also 50% retracement of larger 0.9472/0.8302 descend, reinforced by weekly Kijun-sen line). Sustained break above this strong barrier would trigger fresh acceleration towards 0.9000 zone (psychological barrier / near Fibo 61.8% retracement), as the pound stays under increased pressure on Brexit concerns. Meantime, dips from session low are so far holding above initial support at 0.8749 (broken Fibo 38.2% of 0.9472/0.8302), which should ideally contain corrective actions and guard pivot at 0.8664 (rising daily Tenkan-sen line).

Res: 0.8850; 0.8887; 0.8936; 0.9025

Sup: 0.8749; 0.8692; 0.8664; 0.8590

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold holds above $5,000 as bears seem hesitant amid Fed rate cut bets

Gold edges lower at the start of a new week, though it defends the $5,000 psychological mark through the Asian session. The underlying bullish sentiment is seen acting as a headwind for the bullion. However, bets for more rate cuts by the Fed, bolstered by Friday's softer US CPI, keep the US Dollar bulls on the defensive and continue to support the non-yielding yellow metal as the focus now shifts to FOMC Minutes on Wednesday.

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.