GBP/USD analysis: at fresh three-month lows and bearish

Valeria Bednarik FXStreet

GBP/USD Current Price: 1.2844

A stalemate Brexit continues pressuring Sterling against all major rivals.
USD stronger despite some positive news regarding car tariffs.

The GBP/USD pair fell to 1.2825, its lowest since last February, amid a combination of dismal market mood and Brexit-related headlines. Concerns about global economic growth got triggered by softer-than-expected Chinese data, adding to persistent US-Sino tensions. The Sterling, meanwhile, was negatively affected by comments coming from Labour's spokesman, who said that gaps remained between the Labour Party and the government. PM May, on the other hand, plans to pass her Brexit deal through the Parliament in the first week of June, still struggling to build a majority. Clearly, the market doesn't believe she will succeed in this new attempt, without giving up some of her red-lines, something she clearly won't do. The UK didn't release relevant data this Wednesday, and the kingdom's macroeconomic calendar will remain empty also Thursday.

The pair bounced just modestly on risk-positive news, now heading into the Asian opening trading in the 1.2860 region, and short-term bearish, despite oversold according to intraday technical readings. The GBP/USD pair is being unable to recover beyond the April low at around 1.2850, now an immediate resistance, while, in the 4 hours chart, the price collapsed below a bearish 20 SMA, while technical indicators maintain their bearish slopes, the Momentum extending its decline and the RSI resuming it, both well into oversold territory. February low at 1.2772 comes as the next possible bearish target, with a break below it opening doors for a downward extension toward the 1.2500 figure.

Support levels: 1.2825 1.2770 1.2730

Resistance levels: 1.2865 1.2905 1.2940

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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 clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

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

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.