GBP/USD Forecast: Buyers surge on dips, but higher highs at doubt

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4171

UK PM Boris Johnson reiterated they are on track to fully reopen on June 21.
UK money-related figures were mixed in April, Mortgage Approvals surged.
GBP/USD continues to trade within familiar levels and near the year’s high.

The GBP/USD pair fell to 1.4111, its lowest for the week, now trading around 1.4170 as demand for the dollar receded during US trading hours. It is notable that once again, the pair depended solely on whether investors decide to buy or sell the greenback. UK news were mixed, as data was soft, but Prime Minister Boris Johnson remains optimistic about reopening the economy, affirming that the UK is on track to fully reopen on June 21.

The UK published April Mortgage Approvals, which rose 86.9K, beating expectations, although Consumer Credit in the same month was worse than anticipated, printing at £-0.377 billion. On Thursday, Markit will release the UK Services PMI, expected to be confirmed at 61.8 in May.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral-to-bearish in the near-term. The 4-hour chart shows that it kept developing below a flat 20 SMA while above the 100 SMA, which also lacks directional strength. Technical indicators are stuck around their midlines, turning marginally lower, suggesting decreasing buying interest instead of hinting at an upcoming slide. Renewed selling pressure below the mentioned daily low should see the pair approaching the 1.4000 threshold.

Support levels: 1.4110 1.4070 1.4020

Resistance levels: 1.4190 1.4235 1.4285

View Live Chart for the GBP/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.