GBP/USD Forecast: no more Brexit-resilient data

Valeria Bednarik FXStreet

The dollar gathered momentum with London opening, putting the GBP/USD pair under pressure ahead of the release of the UK January Retail Sales figures, which anyway fueled the decline as the numbers resulted well below market's expectations, whilst December readings suffered downward revisions. Sales fell in the month by 0.3%, while when compared to January 2016, sales rose by 1.5%, below the 3.4% advance expected and the lowest growth since November 2013. Without fuel, monthly sales decreased by 0.2%, whilst the annual reading came in at 2.6% from previous 4.7% and the expected 3.9%. UK macroeconomic data has been quite disappointing lately, as the economy is finally feeling the impact of Brexit, in the form or rising inflation.

The GBP/USD pair fell down to 1.2402, and trades a few pips below 1.2430, the 38.2% retracement of the latest bullish run, and below the 200 EMA in the 4 hours chart that anyway remains flat. The 20 SMA in the mentioned time frame gains bearish strength above the current level, whilst technical indicators turned south and entered bearish territory.

The weekly low stands at 1.2382, with a break below it exposing 1.2345, the 50% retracement of the same rally and this month low. An extension below 1.2330 should confirm further declines towards the 1.2280/90 price zone.

The pair has an immediate resistance at 1.2480/90, followed by the 1.2540 region. It would take a break above this last, something quite unlikely, to see the pair reversing the negative tone.

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.