GBP/USD Forecast: nearing 2017 high, bullish

Valeria Bednarik FXStreet

The Sterling Pound flirts with 1.3000 against the greenback this Thursday, extending the positive momentum triggered by BOE's Governor Carney, who said that the global recovery would make interest rate rise "necessary," moreover if wages surge. That was quite a change from his "not time to raise rates" from a couple of weeks ago, leading to an over 200 pips gain in the pair in a matter of hours. Having held on to gains, news released early London supported the Pound, as May money figures beat expectations. The number of mortgages approved in the month rose to 65,202, while net consumer lending rose by £1.732 billion, beating expectations and surpassing previous month's readings.

Get Forex Headlines by Email

The hottest stories of the currency markets in your inbox

From a technical point of view, the pair is extremely overbought, but while the price keeps advancing, indicators have lost upward strength, beginning to neutralize yesterday's sudden advance in the 4 hours chart. The 20 SMA in the mentioned chart maintains a strong upward slope after crossing above the 200 EMA, both far below the current level.

Beyond the 1.3000 threshold, the pair has a strong static resistance around 1.3040/50, where the pair met selling interest multiple times last May and the highest for this year. Beyond it, 1.3100 is the next possible bullish target for today. The immediate support comes at 1.2960, while below it, the pair can correct down to 1.2920 short term.

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 stays weak near 1.1850 on firmer US Dollar

EUR/USD holds onto Friday’s losses near 1.1850 in the early European trading hours on Monday. The pair remains vulnerable to further downside as the US Dollar stays firm following President Donald Trump’s nomination of Kevin Warsh as the next Fed Chair. The focus now shifts to the US ISM Manufacturing PMI data.

GBP/USD drops below 1.3700 as markets mull a Fed under Warsh

GBP/USD stays under pressure below 1.3700 in the European morning on Monday. Traders weigh what a Federal Reserve under Kevin Warsh might look like, propping up the US Dollar at the expense of the Pound Sterling. The US ISM Manufacturing Purchasing Managers Index report is next of note later on Monday.

Gold: Correction extends ahead of US ISM PMI

Gold price extends correction to fresh monthly lows near $4,400 in European trading on Monday, pressured by some profit-taking. The precious metal continues its downtrend after reaching historic highs last week as Kevin Warsh's nomination as the next Fed chair eases concerns over the US central bank’s independence, bolstering the US Dollar recovery. US ISM PMI Manufacturing PMI data is awaited.

Bitcoin slips below $75,000 as selling pressure accelerates

Bitcoin (BTC) price falls below the $75,000 mark on Monday, having corrected nearly 11% in the previous week and reaching level not seen in nearly 10 months. Market momentum has clearly turned bearish, with technical indicators pointing to further downside toward the next key support at $70,000.

Warsh effect ripples through markets, central banks on deck this week

The first full month of the year is behind us, and, honestly, it has been rather more dramatic than most had anticipated when toasting the New Year. We wrapped up last week with US President Donald Trump announcing his Fed Chair pick.