GBP/USD analysis: consolidating near multi-month lows, waiting for BOE

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3542

GBP/USD bounced for a second consecutive day from the key 1.3480 region.
Market players sidelined ahead of Thursday's data, BOE's decision.

The GBP/USD pair bounced from 1.3484 to trim most of its daily losses mid- US afternoon, as headlines regarding US President´s decision on the Iranian nuclear deal triggered some risk aversion that interrupted dollar's rally and sent it marginally lower against its major rivals. Data coming from the UK disappointed, as according to Halifax, house prices in the three months to April were 2.2% higher than in the same period a year earlier, down from the previous 2.7% annual growth, while monthly basis, prices fell by 3.1% in April, much worse than the expected 0.2% decline. Wednesday will offer a data-light calendar from the UK, with attention centered in the upcoming BOE's Super Thursday. The intraday recovery pushed the pair up to its 20 SMA in the 4 hours chart, with the pair still unable to clearly break above the indicator. The Momentum turned higher in neutral territory, while the RSI bounced from oversold readings but remains below its mid-line, limiting the upward potential to a corrective movement, more likely after the pair lost roughly 900 pips. The pair has bottomed at 1.3481 last July, making of the 1.3480 region a strong support for the upcoming sessions, with a break below the level probably initiating a steeper downward move.

Support levels: 1.3480 1.3445 1.3410

Resistance levels: 1.3550 1.3590 1.3625

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.

AUD/USD sits near monthly high, around 0.7035 on hawkish RBA

AUD/USD trades around 0.7030-0.7035 in the Asian session on Thursday, near its monthly top, as recent hawkish comments from RBA officials continue to underpin the Australian Dollar. The US Dollar, meanwhile, struggles to lure buyers amid further declines in US bond yields, adding support to the pair. However, Fed rate-hike bets and geopolitical uncertainty help limit losses for the safe-haven buck, warranting caution for Aussie bulls.

USD/JPY remains confined in a familiar range; holds steady above 158.00

USD/JPY extends its consolidative price action through Thursday's Asian session, trading just above 158.00 amid diverging forces. Uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. The US Dollar, meanwhile, languishes near multi-week low amid declining US bond yields. Furthermore, looming intervention risks limit JPY losses and cap the pair. Traders also seem hesitant ahead of the Fed and BoJ meetings next week.

Gold hangs near one-week low; eyes $4,100 break amid Fed hike bets

Gold attracts fresh sellers in Thursday’s Asian session, sliding closer to a one-week low touched the previous day. Firming expectations for an imminent Fed rate hike, bolstered by oil-driven inflation risks, weigh on the non-yielding bullion. Meanwhile, declining US bond yields counter geopolitical uncertainty, keeping US Dollar bulls on the defensive. This helps XAU/USD defend $4,100.

Dogecoin Labs launches, resistance looms

Dogecoin (DOGE) Labs launched Wednesday in partnership with the Dogecoin Foundation, bringing together several product teams and technologies to expand the use of the memecoin (DOGE) across payments, decentralized finance (DeFi) and consumer applications. The launch will consolidate MyDoge, DogeOS and Such App under one business, led by Jordan Jefferson, founder of MyDoge and DogeOS.

What the midterm elections mean for Treasury yields, the Dollar and Gold

Democrats are priced to take the House, so November 3 comes down to the Senate and how much Washington can borrow without the other party. Treasury yields will show the answer first, then the Dollar and Gold. On November 3, Americans vote for all 435 House seats and 35 Senate seats. For bond prices, the result comes down to one thing: how much the government will borrow over the next two years.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.