GBP/USD Forecast: No reasons for the Pound to advance

Valeria Bednarik FXStreet

GBP/USD Current Price: 1.2965

UK data mixed but mostly worrisome with no growth and falling Industrial Production.
Tensions between the UK and the EU keep weighing on the Pound.
GBP/USD advanced for a second consecutive day but remained below 1.3000.

The GBP/USD pair has posted a modest advance for a second consecutive day, hovering now around 1.2950. Data coming from the UK was quite discouraging as the preliminary estimate of Q4 GDP came in at 0% as expected, while Industrial Production rose a modest 0.1% MoM in December, and declined by 1.8% yearly basis, missing the market’s expectations. Manufacturing Production in the same period was also disappointing, down by 2.5% YoY.

In the Brexit front, European Commission President Ursula von der Leyen responded to UK PM Johnson’s words about his desire of a Canada-style deal, indicating that, given the “unique” level of access Britain would have to the bloc’s single market, the UK mist stick to tough rules to prevent any harm to the EU economy. EU’s Barnier warned UK leaders no to “kid themselves,” as Brussels won’t give a special deal related to financial services. BOE’s Carney spoke before the Economic Affairs Committee, and among other things, he said that some stimulus might be required to get back to trend growth.

GBP/USD short-term technical outlook

The GBP/USD pair’s recovery had more to do with an easing dollar than with Pound’s strength. Despite advancing, the bullish potential is limited, according to the 4-hour chart, as the pair has settled above its 20 SMA while technical indicators turned flat after entering positive territory. The price, however, continues to develop below the 100 and 200 SMA. The pair has an immediate resistance at 1.2975 but would need to run beyond 1.3030 to turn bullish.

Support levels: 1.2900 1.2865 1.2820

Resistance levels: 1.2975 1.3000 1.3030

View Live Chart for 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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.