GBP/USD analysis: dollar resumes advance

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2810

UK budget presentation failed to motivate Pound's bulls.
Dollar stronger as risk-off returns in the US afternoon.

The GBP/USD pair spent most of this first day of the week holding above 1.2800 ending the day marginally lower in the 1.2800 price zone. The most relevant event of the day was UK's Chancellor Phillip Hammond presenting the kingdom's budget. Among his opening remarks, he said "the era of austerity is over," among other encouraging statements that clearly failed to motive Pound's bulls, more concerned these days about the effects of Brexit on the UK economy, and Hammond words over the weekend, claiming that a no-deal Brexit will need adjustment to this budget. Growth forecast was revised slightly higher and the expected deficit lower. Minor data from the UK showed that Consumer Credit in the UK rose by less-than-expected in September, up by £0.785B, while Mortgage Approvals in the same month were up by 65.269K, better than the 65.000K forecasted. On Tuesday, the UK will release the CBI Realized Trades Survey for October.

Meanwhile, the pair remains near the multi-month low of 1.2776 hit last week, and technically bearish according to intraday technical readings, as the pair is below a strongly bearish 20 SMA, which capped an early attempt to advance and is currently around 1.2840, while technical indicators turned south, the Momentum accelerating to fresh daily lows and the RSI currently at 28, in line with further slides ahead particularly on a break below 1.2775.

Support levels: 1.2775 1.2740 1.2700

Resistance levels:1.2850 1.2880 1.2925

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 climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold stalls below $4,200 as Fed rate-hike bets limit upside

Gold (XAU/USD) struggles after opening the week higher. The US Dollar (USD) and US Treasury yields find some footing following last week’s pullback as traders assess the Federal Reserve’s (Fed) interest rate path and geopolitical developments.

Crypto Today: Bitcoin, Ethereum, XRP extend recovery despite ETFs outflows

Bitcoin edges higher above $82,000, building strong structural support despite roughly $229 million in ETF outflows last week. Ethereum recovers above $2,400 as bulls strive to regain trend control, backed by a subtle recovery in momentum indicators.

Higher than expected inflation shakes markets: What to prepare for?

US CPI report came in stronger than expected, lifting the probability of a December rate hike higher once again. Even though Fed Chair Warsh reinforced expectations of a hold for the October’s meeting, markets now face a two-step event: a likely pause on October 28, followed by an interest rate hike on December 9.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.