GBP/USD Analysis: In tight range between 1.2950 and 1.30

Dukascopy Bank Team Dukascopy Bank SA

“We remain fundamentally bearish on the GBP as we expect the Brexit process to weigh on growth and the government’s stance to compromise prospects for the services industry.”

- Scotiabank (based on PoundSterlingLive)

Pair’s Outlook
On Thursday the British Pound weakened against the US Dollar, amid a better-than-expected reading of the US GDP. Basically, the GBP/USD currency pair has been consolidating since the beginning of the week, while holding above the 1.2950 level for more than two weeks. Consequently, a bearish development seems unlikely, but taking into account the fact that the Cable has been trading in a down-trend since the beginning of September, a rally beyond 1.30 would be difficult to achieve. Moreover, technical indicators keep suggesting the pair is to weaken further, but in this case the support line at 1.2932 should be the bottom floor.
Traders’ Sentiment
Today 57% of traders are long the Sterling, compared to 55% yesterday. The number of purchase orders, however, slid from 51 to 44%.

Author

Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.