GBP/USD Forecast: nearing post-Brexit close

Valeria Bednarik FXStreet

The British Pound continues outperforming its major rivals, soaring through 1.3500 against the greenback and nearing 1.3600, up for the day almost 200 pips. Comments from BOE's MPC Vlieghe, a well-known dove, on the need of rising rates "soon," where behind the initial spike, later fueled by the technical breakout of the 1.3500 level. The pair is at its highest since June 2016 when it plunged on the Brexit referendum outcome.

In the meantime, the London police declared that the explosion that took place earlier today at Parson Green station was a terrorist attack. UK’s police added that a man with a knife is on the run and that a second bomb was deactivated by the cops.

The pair topped so far at 1.3588, before pulling back modestly, but anyway sharply up for the day. Intraday technical readings are heading north in extreme overbought territory, still heading north, but losing meaning after the pair run almost straight 400 pips in the last 24 hours. On June 24th 2016, and following the Brexit referendum and a 1,300 pips slide, the pair closed the day at 1.3632 a probable bullish target on a break above the mentioned daily high. Downward corrective movements are likely, but speculative interest may choose to buy on dips. Supports from here came at 1.3530 and 1.3490, ahead of the 1.3440/60 price zone.

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.