GBP/USD Forecast: Painful advance not meant to continue

Valeria Bednarik FXStreet

GBP/USD Current Price: 1.2965

European Parliament agreed that the UK needs to change rules before discussing a deal.
UK macroeconomic calendar with nothing relevant to offer the next days.
GBP/USD advanced for a third consecutive day, retreated from near 1.3000.

The GBP/USD pair has advanced for a third consecutive day, although it remains below the 1.3000 threshold. As it happened ever since the week started, the pair’s advance has more to do with the broad dollar’s weakness than with a sudden interest for the Pound. In fact, the UK didn’t release macroeconomic data this Wednesday, while the Brexit front continued to provide negative news. The European Parliament agreed that any deal must respect a “level playing field” by updating its rules to equal those of the Union. UK PM Johnson has ruled out the EU’s proposed “dynamic alignment” of EU-UK laws.

The UK macroeconomic calendar will remain light for the rest of the week, and will only publish this Thursday the RICS Housing Price Balance for January seen up by 3.0% following a 2.0% decline in the previous month.

GBP/USD short-term technical outlook

The GBP/USD pair offers a mildly bullish stance in the short term, although the suffered advance seen this week hardly supports further gains ahead. In the 4-hour chart, the pair has spent the day above its 20 SMA, which aims marginally higher at around 1.2930, but remains far below the larger ones. Technical indicators have eased from their highs but stabilized within positive levels, somehow indicating absent selling interest. Nevertheless, chances of a continued advance seem limited amid mounting Brexit-related tensions.

Support levels: 1.2945 1.2900 1.2865

Resistance levels: 1.3000 1.3030 1.3075

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 weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

XRP sell-off deepens amid weak retail interest, risk-off sentiment

Ripple (XRP) is edging lower around $1.36 at the time of writing on Wednesday, weighed down by low retail interest and macroeconomic uncertainty, which is accelerating risk-off sentiment.