GBP/USD analysis: consolidating near recent highs ahead of UK GDP

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4269

UK Q4 GDP to be released this Friday, seen at 0.4%.
GBP/USD could correct lower but remains intrinsically bullish.

The GBP/USD pair continued advancing, up to 1.4345 a fresh post-Brexit referendum high, on the back of dollar's weakness, exacerbated by ECB's monetary policy decision that resulted in a stronger EUR. The pair, however, retreated in the US afternoon to settle some 100 pips below the mentioned high, anyway holding to some modest intraday gains. Minor figures coming from the UK were mostly soft, as the CBI Distributive Sales Survey resulted as expected in January at 12%, down from previous 20%, reflecting the modest pace of growth in retail sales. Mortgage approvals in December were well below expected, resulting in 36.115K, well below the previous 39.007K or the expected 39.700K. This Friday the UK will release its Q4 GDP seen matching previous reading with a 0.4%. The 4 hours chart shows that the pair is currently in a consolidative stage near its highs, holding above a firmly bullish 20 SMA, over 150 pips below the current level. Technical indicators in the mentioned chart have lost their strength upward but hold within overbought territory, increasing chances of a correction, particularly if the pair break below 1.4220, the immediate support.

Support levels: 1.4220 1.4165 1.4120

Resistance levels: 1.4300 1.4345 1.4390

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 advances to three-month peak beyond 1.3600

GBP/USD extends its daily rally and trades at its highest level since mid-May above 1.3600. The US Treasury Department decision to double the sice of liquidity support buyback operations for longer-dated nominal coupon securitiez weighs heavily on the US Dollar and helps the pair push higher. Earlier in the day, the data from the UK showed that annual Consumer Price Index (CPI) inflation picked up to 2.9% in July, meeting estimates, while core CPI rose by 2.6% YoY in July versus 2.5% expected.

EUR/USD surges to 11-week high above 1.1650 after US Treasury announcement

EUR/USD gathers bullish momentum and trades at its highest level since early June above 1.1650 on Wednesday. The US Dollar stays under heavy bearish pressure after the US Treasury announced that it will increase the size of liquidity support buyback operations for longer-dated nominal coupon securities. Later in the day, investors will scrutinize FOMC Minutes for fresh clues on policy outlook.

Gold pulls back from 11-week highs, battles $4,500

Gold eases from its highest level since early June, battling $4,500 in the Asian session on Thursday. The US Dollar draws some support from the US-Iran standoff and hawkish FOMC Minutes, capping the upside for the bullion. Gold short through the roof on Wednesday after the US Treasury Department stepped in to provide relief to bond markets, leading to a sharp decline in yields and boosting the non-yielding yellow metal.

HYPE soars 20% as Trump signals efforts to bring Hyperliquid to US market in White House meeting

Hyperliquid surged over 20% on Wednesday after President Donald Trump said the Commodity Futures Trading Commission is working to bring the decentralized perpetual futures platform into the US.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.