GBP/USD Forecast: Nice comeback from multi-month lows

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3934

UK PM Johnson noted that they need to be cautious about easing restrictions.
The focus is on the Bank of England monetary policy meeting later in the week.
GBP/USD seems poised to extend its corrective advance in the near-term.

The GBP/USD pair trades near a daily high of 1.3934, recovering from a fresh monthly low of 1.3785. The pound rallied despite comments from UK Prime Minister Boris Johnson, who said that cases of the coronavirus Delta variant are still going up, adding that they need to be cautious on easing restrictions. He added that data is looking good ahead of the July 19 deadline, although noting that traveling will be “difficult.”

The UK published the June Rightmove House Price Index, which was up by 7.5% YoY. On Tuesday, the country will publish May Public Sector Net Borrowing, previously at £30.962 billion. The main event this week will be the Bank of England monetary policy meeting next Thursday.

GBP/USD short-term technical outlook

The GBP/USD pair could extend its advance, according to intraday technical readings, although it’s not yet confirmed. In the 4-hour chart, the pair is above a bearish 20 SMA, while the Momentum indicator advances within neutral levels. The RSI indicator, however, is flat at around 48. Bulls could have better chances once above 1.3960, the immediate resistance level.

Support levels: 1.3890 1.3850 1.3805

Resistance levels: 1.3960 1.4010 1.4060

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 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.