GBP/USD analysis: consolidating at 4-month lows

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3566

UK holiday kept trading around the Pound limited.
Brexit has the potential of affecting negatively the Sterling these days.

Trading around the GBP/USD pair was quite uneventfully during the first day of the week amid a holiday in London and the absence of macroeconomic headlines coming from major economies. Brexit has returned to the back front in terms of relevance for Pound's direction, with the latest news indicating that UK PM May can't find consensus within her own cabinet about a future trade deal, exacerbating the negative momentum triggered by a batch of disappointing macroeconomic data. This Thursday will be critical, as not only the BOE will announce its latest monetary policy decision, but will also unveil Industrial and Manufacturing Production data for March. In the meantime, the pair is short-term neutral, although consolidating at a 4-month low, with the upside potential well-limited according to technical readings in the 4 hours chart as the pair hovers around a bearish 20 SMA, while technical indicators have managed to regain some ground, the Momentum still heading north around its mid-line, but the RSI already losing its poise and turning south around 43. The pair bottomed last Friday at 1.3485, still the level to break to confirm an extension of the dominant bearish trend.

Support levels: 1.3510 1.3485 1.3450

Resistance levels: 1.3610 1.3645 1.3690

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.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.