GBP/USD Forecast: Modest recovery, further gains unclear

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3718

UK’s Publish Sector Net Borrowing resulted in £22.02 billion in June, better than anticipated.
Brexit tensions around the Northern Ireland Protocol keep increasing.
GBP/USD extends its recovery but additional gains are still unclear.

The GBP/USD pair holds on to gains as Tuesday’s trading comes to an end, after reaching an intraday high of 1.3722 The pair advanced as the market’s mood improved, to the detriment of the American currency. The macroeconomic calendar was scarce in the UK, as the country published June Publish Sector Net Borrowing, which came in at £22.02 billion, better than expected.

Meanwhile, Brexit-related tensions persist. The EU rejected the UK’s demand for a new approach to the Northern Ireland Protocol. UK Prime Minister Boris Johnson said that there are practical steps they can take to do that, but it does not seem the Union will convene to any change. On Thursday, BOE’s Broadbent is scheduled to speak.

GBP/USD short-term technical outlook

The GBP/USD pair holds on to intraday gains, trading near its daily high. However, its bullish potential is limited. The 4-hour chart shows that it stands above a bearish 20 SMA, while technical indicators are losing their bullish strength around their midlines. The longer moving averages maintain their bearish slopes well above the current level. The pair has a strong static resistance level at 1.3760, with additional gains possible on a break above it.

Support levels: 1.3675 1.3630 1.3580

Resistance levels: 1.3760 1.3805 1.3850

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 keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

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.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

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.