GBP/USD Forecast: dovish Carney hits Pound

Valeria Bednarik FXStreet

The GBP/USD pair sunk to 1.2668, following a speech from BOE's Governor Carney, who said that it's no time to raise rates, given the "anemic" wage growth and mixed signals coming from consumer spending. His comments were in line with his previous thoughts, but given Sterling's fragility following the outcome of the latest election, market players rushed to sell it. The pair bounced from the mentioned daily low, now struggling to regain the 1.2700 level, but still under pressure.

The macroeconomic calendar has nothing to offer this Tuesday, which means that Brexit-related headlines will likely keep on leading the pair, alongside with market's sentiment. As for the greenback, early week demand seems to have eased, although confident US traders may give it another boost, moreover if Wall Street extends its record run.

Technically, the risk is towards the downside for the pair, as in the 4 hours chart, an early advance was quickly rejected by a bearish 20 SMA, currently around 1.2750, whilst technical indicators extended their bearish slopes within negative territory. Below the mentioned daily low, the next bearish target comes at 1.2634, the low set after the election, while below this last, the decline can extend down to 1.2590.

Resistances stand now at 1.2710, and the mentioned 1.2750 region, where selling interest should cap rallies.

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 off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.