GBP/USD analysis: BOE hurt Pound´s demand, employment next

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3540

The UK will release its latest employment figures and the Inflation Hearings report next Tuesday.
GBP suffered after the BOE cut inflation and growth forecasts.

The GBP/USD pair spent the week consolidating at its lowest in 4 months, unable to gather momentum from broad dollar's weakness, as Pound bulls were disappointed by a dovish, on-hold BOE. The central bank kept rates unchanged as expected after the latest batch of soft UK data, but also cut its inflation and growth forecasts for this year and the next, reducing odds of a hike in the second half of the year. The UK will release its latest employment data next Tuesday, the event with most chances of affecting the Pound this week. Wages are expected to have posted a modest advance in the three-month to March, which coupled with easing inflation, will further dent chances of a rate hike in the UK. The kingdom will also release its Inflation Hearing Reports on the same day. In the meantime, the daily chart shows that the pair has been pivoting around the current level with no definitions ever since the week started, which helped technical indicators correct partially extreme oversold conditions, falling short, however, of suggesting a bottom has been placed, as such indicators remain directionless well into negative territory, while the 20 DMA maintains a strong bearish slope far above the current level. In the 4 hours chart, the technical outlook is neutral for the short-term, as the pair keeps hovering around a flat 20 SMA, while technical indicators move back and forth around their mid-lines, failing to provide clear directional clues. The pair fell this past week to 1.3459, making of the level a strong support and the level to break to anticipate a downward extension ahead.

Support levels: 1.3500 1.3460 1.3420

Resistance levels: 1.3590 1.3620 1.3665

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.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

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.