GBP/USD analysis: bullish potential increased but not confirmed

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4000

UK empty macroeconomic calendar leaving Cable in dollar's hands.
USD sell-off could lead to an advance up to 1.4066, February 8th high.

The GBP/USD pair reached a fresh weekly high a couple of pips above 1.4000, stabilizing in the US afternoon around it. The Cable danced at dollar's pace this Wednesday, as there were no fresh macroeconomic releases coming from the UK. The pair fell down to 1.3799 right after the release of US inflation figures, which resulted above market's expectations, further fueling speculation that the US Federal Reserve will need to raise rates at a faster pace, but a u-turn in equities, with lost big ahead of the opening, sent the greenback into sell-off mode across the FX board. The UK macroeconomic calendar will remain empty this Thursday, which means that the pair will continue moving on dollar's woes. Short-term, the 4 hours chart indicates a modest upward potential, as the pair advanced above converging and directionless moving averages, while technical indicators remained within positive territory, having bounced from their mid-lines but now lacking clear directional strength. Steady gains beyond 1.4000, however, should favor additional gains ahead toward 1.4066, the high posted on February 8th.

Support levels: 1.3965 1.3920 1.3885

Resistance levels: 1.4035 1.4070 1.4110

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 extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.