GBP/USD analysis: shy recovery not enough to confirm a temporal bottom

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3976

Pound remains out of market's favor, bounce triggered by USD weakness.
UK calendar with little to offer this Wednesday.

The GBP/USD pair posted a nice recovery from a fresh April low of 1.3917, as enthusiasm over the greenback faded on better developments in the stocks' markets. The UK released the CBI industrial Trend Survey on Orders for April, which came in at 4, against the expected 6, as the positive sentiment was backed by a cheaper Pound. The UK macroeconomic calendar has nothing to offer this Wednesday, while there are no fresh news about progress on Brexit negotiations. The Pound fell out of market's favor as first-tier data released last week disappointed big, while BOE's Governor Carney downplayed chances of a May hike. After the latest plunge, the GBP/USD pair is well below the 23.6% retracement of such slide, at 1.4025 and as long as below the level, chances are still to the downside. Technical indicators in the 4 hours chart have recovered from oversold territory, but remain below their mid-lines, while the 20 SMA extended its slide and its currently around 1.4000, also limiting chances of an upward extension.

Support levels: 1.3960 1.3920 1.3880

Resistance levels: 1.3990 1.4025 1.4060

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 hits eight-month lows below 0.6850 amid bullish USD

AUD/USD stays defensive below 0.6850, hitting an eight-month low in the Asian session on Thursday as the possibility of a steeper Fed rate hike in December helps the US Dollar hold near its highest level since April 2025. Geopolitical uncertainty also supports the safe-haven buck, while the RBA’s cautious, on-hold stance limits the Aussie.

USD/JPY eases from near 160.00 amid looming intervention risks, BoJ hike bets

USD/JPY retreats slightly from an over two-month high as the recent surge back to the 160.00 psychological mark prompted verbal warnings from Japanese authorities and sparked fears of direct FX intervention. Moreover, data showed that Japan’s wholesale inflation picked up again in October, strengthening the case for a BoJ hike in December and lifting the Japanese Yen. However, a bullish US Dollar, bolstered by odds of a jumbo Fed rate hike in December, could cap the pair's downside.

Gold hits fresh one-week low, eyes $3,950 amid sustained USD buying and Fed hike bets

Gold extends its descending trend for the third straight day, sliding back to $3,950, or its lowest level in more than a week. The US Dollar buying remains unabated amid firming Federal Reserve rate-hike expectations, bolstered by hot US consumer inflation figures. Adding to this, Middle East uncertainties further underpin the safe-haven buck, which, in turn, is seen as a key factor exerting downward pressure on the commodity.

MSCI drops Strategy from indexes: What it means for Bitcoin

Strategy and Bitcoin (BTC) came under fresh pressure late Wednesday after MSCI finalized its decision to remove the Bitcoin treasury company from its global indexes, raising concerns about potential selling pressure on MSTR shares and its future Bitcoin purchases.

Why the US Dollar's rally isn't as strong as it looks

The US Dollar Index (DXY) is back at an 18-month high, but most of its climb since August is the Euro falling. Against a wider group of trading partners, the Dollar has gained half as much, and the Federal Reserve has raised rates once this year. The US Dollar Index, which measures the Dollar against six other currencies, is trading near 103.

What the US CPI headline doesn’t tell you about inflation

Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.