GBP/USD Forecast: Likely to defend YTD lows ahead of BoE’s Super Thursday

Haresh Menghani FXStreet

The GBP/USD pair remained under some intense selling pressure on Tuesday and continues to be weighed down by Brexit negotiation impasse. Adding to this, a strong follow-through US Dollar buying, supported by the US President Donald Trump's comments over a possible trade deal with China, further collaborated towards aggravating the selling pressure.

The downward momentum accelerated during the US trading session and dragged the pair momentarily below the 1.2700 handle and back closer to YTD lows, set in mid-August. The bearish pressure now seems to have abated, at least for the time being, with the pair holding steady above the 1.2700 handle through the Asian session on Wednesday.

In absence of any major market moving economic releases from the UK, any incoming Brexit-related news/development might continue to act as an exclusive driver of the sentiment surrounding the British Pound. Later during the early North-American session, the US private sector employment details - ADP report, will influence the USD price dynamics and assist traders to grab some short-term opportunities.

From a technical perspective, near-term oversold conditions on daily/4-hourly chart warrant some consolidation ahead of the BoE's Super Thursday. Hence, the pair seems more likely to defend YTD lows support, around the 1.2665-60 region, at least for the time being, which if broken decisively should pave the way for an extension of the well-established bearish trend.

On the flip side, any attempted recovery moves might now confront immediate resistance near the 1.2765-70 region, above which the pair is likely to aim towards reclaiming the 1.2800 handle before eventually aiming to retest the 1.2840-50 supply zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD holds losses below 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot below 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand and reports that ECB President Lagarde will step down before the end of her term. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.