GBP/USD Forecast: headed towards 1.2700/20 region

Valeria Bednarik FXStreet

The GBP/USD pair broke through 1.2800 and settled a fresh 2-month low of 1.2791 early London, undermined by persistent Pound weakness. Stocks trade with a soft tone, with European indexes moving back and forth around their opening levels, as speculative interest is waiting for the upcoming Jackson Hole Symposium with the main focus on Yellen and Draghi's speeches. They are both expected to be cautious on upcoming monetary policy moves, but any hint could trigger big movements in the financial world.

A stronger EUR, triggering a rally in the EUR/GBP towards 0.9200 helped sending the GBP/USD pair lower, despite dollar's demand is limited across the board.

Now trading a few pips above 1.2800, the pair maintains a bearish stance according to intraday technical readings, with the 4 hours chart showing that the price is well below a bearish 20 SMA whilst technical indicators turned further south within negative territory.

Below the mentioned daily low, the next short term support comes at 1.2750, en route to 1.2700/20 region where the pair has a strong static support area. The immediate resistance is now 1.2840, with gains beyond the level favoring an approach to the 1.2900 region, where selling interest will likely return.

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 faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.