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 looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

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 battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

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.