GBP/USD Forecast: Pound keeps rallying

Valeria Bednarik FXStreet

Pound's rally extends this Wednesday, with the pair up to 1.3234, a fresh 3-week high against its American rival. There was no catalyst behind the rally, but strong demand for the depressed currency in London. In fact, the rally stalled after the release of the BBA's borrowing figures, the first gathered after the EU referendum. According to the release, mortgage approvals came in below expected, at 37.662K, and below previous revised 39.763K, but there's no significant different from readings pre-Brexit.

European equities are sharply higher, but the Footsie lags, due to a strong GBP. Also, helping the recovery is a bounce in oil prices after falling during the past Asian session.

Now trading around 1.3230, the 4 hours chart present a strong upward potential, given that the price is accelerating above its 200 EMA for the first time since the Brexit, while indicators head strongly higher, nearing overbought territory.

There's an intraday resistance at 1.3260, with further gains beyond the level favoring an upward continuation up to 1.3320, the 23.6% retracement of the post-Brexit slump and a major static resistance level. The immediate support on the other hand, comes as 1.3210, Tuesday's high, with a break below it signaling a probable bearish correction towards the 1.3160 region. Nevertheless, buying interest is expected to surge around this last.

View live chart of the GBP/USD pair

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.