GBP/USD analysis: at the lower end of its range, bearish

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3469

Future trade-deal between the EU and the UK back to the spotlight.
UK inflation and retail sales to be out this week, expected to bring some hope for Pound.

The GBP/USD pair remained under pressure, ending the week near the 1.3450 4-month low established last Wednesday, with the Pound undermined by resurgent concerns around the EU-UK future trade relationship post Brexit, as the clock keeps ticking and no deal has been so far reached. There were no relevant UK macroeconomic releases these last days but this one the kingdom will offer April inflation figures next Wednesday, and Retail Sales data on Thursday, with inflation seen stabilizing above 2.0% and sales increasing from the previous slump, which may help the Pound bounce. The pair has been lacking direction ever since May started, trading in a well-defined 150 pips´ range, but these last few days the pair has been pressuring the lower end of such range, keeping the risk skewed to the downside. Technically the daily chart shows that the 20 DMA heads south almost vertically some 100 pips above the current level, and also that the Momentum indicator heads nowhere right below its mid-line, while the RSI indicator heads lower at 26, having spent almost a month in oversold territory. In the 4 hours chart, the pair presents a neutral-to-bearish stance, holding below a modestly bearish 20 SMA, and with technical indicators heading south, the Momentum within neutral levels, but the RSI gaining downward traction, now around 40, favoring additional declines ahead.

Support levels: 1.3450 1.3410 1.3370

Resistance levels: 1.3490 1.3520 1.3570

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 stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.