GBP/USD: data, Carney spook Pound's bulls

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4052

GBP/USD broke major support, now resistance around 1.4120.
BOE's May rate hike at doubt after Carney's speech.

The Pound continues shedding ground and approaching the 1.4000 figure against the greenback, as not first-tier UK data came below expected this week, but BOE's Governor Carney dampened expectations for a May rate hike in a speech this Thursday. Carney remarked that an interest rate hike is not yet a done deal, as Brexit uncertainty could delay the decision. He added that data is mixed, and they will need to "sit down calmly and look at it all in the round." Odds for a rate hike have decreased sharply afterward, adding pressure to the vulnerable Sterling.

There were no relevant macroeconomic releases in the EU and the UK, while the US will only offer a couple of Fed's speakers. Yields, which rose globally and are the main reason for dollar's strength, will remain the main market motor during the last session of the week.

The GBP/USD pair has broken below the 61.8% retracement of its latest bullish run late Thursday, settling also below the 200 EMA in the 4 hours chart, having remained below this last ever since, usually a sign of continued directional strength in the way of the break. In the mentioned chart, the 20 SMA has accelerated south well above the current level, while technical indicators are resuming their declines after a short-lived consolidative stage in oversold territory, all of which supports lower lows ahead for the pair.

Support levels: 1.4005 1.3970 1.3925

Resistance levels: 1.4080 1.4120 1.4160

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 surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD softens to near 1.1400 as ECB tightening bets fade

The EUR/USD pair trades with mild losses around 1.1415 during the early Asian session on Tuesday. The Euro softens against the US Dollar as traders reduce their bets on the European Central Bank rate hikes this year.

Gold tumbles 1.5% to fresh seven-month lows below $3,950

Gold remains under strong selling pressure for the second straight day early Tuesday, refreshing seven-month lows below $3,950. Renewed US-Iran hostilities over the weekend cast doubts over the sustainability of the peace deal. This, along with elevated expectations for Fed rate hikes, offers some support to the US Dollar and undermines the bullion.

Bitcoin stalls at $60K as buyer conviction fades, Strategy authorizes BTC sales

Bitcoin is trading around the $60,000 level on Monday after a sharp decline last week. With the top crypto struggling to recover, analysts suggest the market remains firmly in defensive territory as investors await stronger signs of demand.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.