GBP/USD Forecast: In search of a fresh catalyst

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3777

UK data was generally encouraging but fell short of boosting the pound.
The broad dollar’s weakness maintains GBP/USD afloat in the near term.
GBP/USD needs to firm up above the 1.3800 level to be able to extend its gains.

The GBP/USD pair posted a modest intraday advance this Wednesday, holding below the 1.3800 threshold. The pair topped at 1.3798 and currently trades in the 1.3780 price zone, backed by the broad dollar’s weakness and encouraging UK data. The UK reported August Nationwide Housing Prices, which rose 11% YoY, beating expectations.

The August Markit Manufacturing PMI was upwardly revised to 60.3, despite “UK manufacturers continued to face rising constraints caused by supply chain issues,” according to the official report. Finally, the UK’s BRC Shop Price Index contracted 0.8% in August, better than the previous -1.2%. The country won’t publish macroeconomic figures on Thursday.

GBP/USD short-term technical outlook

The daily chart for the GBP/USD pair shows that the pair topped around a mildly bullish 200 SMA for a second consecutive day, as the price struggles around a bearish 20 SMA. In the same chart, technical indicators have advanced further within negative levels and are currently challenging their midlines, suggesting an upcoming advance without confirming it.

In the nearer term and according to the 4-hour chart, the pair has limited bullish potential. The pair keeps trading below a flat 200 SMA, providing resistance around 1.3800, although the 20 SMA is crossing above the 100 SMA, both below the current level. The Momentum advances within positive levels but stands below its previous highs, while the RSI is flat at around 57, indicating an absence of buying interest.

Support levels: 1.3725 1.3680 1.3630

Resistance levels: 1.3800 1.3845 1.3890

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 off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.