GBP/USD Forecast: battling to regain 1.2500

Valeria Bednarik FXStreet

The GBP/USD pair continues trading a few pips below the 1.2500 figure, not far from a daily low of 1.2472, barely moving this Friday amid the absence of headlines coming from the UK. Investors are in wait-and-see mode, waiting for news coming from the US, after the Congress decided to delay the vote of the Obamacare repeal bill late Thursday. The process, is seen as a test to the current administration, as Trump's failure to achieve policymakers' support, will likely fueled the unwind of the so-called "Trump-trade" putting stocks, and the greenback under selling pressure. Additionally, the American session will see the release of the preliminary Markit manufacturing PMI and Durable Goods Orders for February in the US.

The 4 hours chart shows that the price is bouncing modestly from a sharply bullish 20 SMA, whilst technical indicators have turned flat after correcting overbought conditions, indicating diminishing selling interest. The pair topped at 1.2530 this Thursday, a few pips below a major Fibonacci resistance at 1.2540, the 23.6% retracement of the January rally.

It would take an upward acceleration beyond the mentioned Fibonacci resistance to see the pair advancing further, with 1.2585 and 1.2620 as the next probable intraday targets. Below the mentioned daily low, the next support is 1.2425, the 38.2% retracement of the mentioned rally, with further declines below it favoring a steeper correction that can extend down to 1.2345, February low and the 50% retracement of the same rally.

View live chart of 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.

EUR/USD holds near 1.1900 ahead of US data

EUR/USD struggles to build on Monday's gains and fluctuates near 1.1900 on Tuesday. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD declines toward 1.3650 on renewed USD strength

GBP/USD stays on the back foot and declines to the 1.3650 region on Tuesday. The negative shift seen in risk mood helps the US Dollar (USD) gather strength and makes it difficult for the pair to find a foothold. The immediate focus is now on the US Retail Sales data.

Gold stabilizes above $5,000 ahead of US data

Gold enters a consolidation phase after posting strong gains on Monday but stays above the $5,000 psychological mark and the daily swing low. US Treasury bond yields continue to edge lower on news of Chinese regulators advising financial institutions to curb holdings of US Treasuries, helping XAU/USD hold its its ground.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.