GBP/USD Forecast: Pound on the right footing

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3775

BOE Deputy Governor Ben Broadbent cooled rate hikes’ expectations.
The UK macroeconomic calendar will be quite busy at the end of the week.
GBP/USD holds on to intraday gains, could extend its gains in the near-term.

The GBP/USD pair edged higher on Thursday, ending the day around 1.3775, not far from a daily high of 1.3787. The pair advanced throughout the first half of the day, supported by the better performance of equities and higher government bond yields. GBP/USD held on to gains despite the optimism deteriorated during the American session, with Wall Street struggling to post modest gains and Treasury yields edging firmly lower.

In the UK, BOE Deputy Governor Ben Broadbent hit the wires. Among other things, he noted that good prices will be “more likely to be pulling down than pushing up inflation in two years' time,” partially blaming higher costs and their effects on inflation to bottlenecks. The country has a busy macroeconomic calendar as it will publish July GFK Consumer Confidence, June Retail Sales and the preliminary estimates of Markit PMIs.

GBP/USD short-term technical outlook

The GBP/USD pair has room to extend its advance. The 4-hour chart shows that the pair advanced above a flat 20 SMA, stalling its advance a few pips below a flat 100 SMA. The Momentum indicator heads firmly north, while the RSI indicator consolidates at around 60, all of which support another leg north. Bulls will have better chances on a clear break above the 1.3800 level.

Support levels: 1.3630 1.3675 1.3620

Resistance levels: 1.3805 1.3850 1.3900

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 weakens to near 1.1900 as traders eye US data

EUR/USD eases to near 1.1900 in Tuesday's European trading hours, snapping the two-day winning streak. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD stays in the red below 1.3700 on renewed USD demand

GBP/USD trades on a weaker note below 1.3700 in the European session on Tuesday. The pair faces challenges due to renewed US Dollar demand, UK political risks and rising expectations of a March Bank of England rate cut. The immediate focus is now on the US Retail Sales data.

Gold sticks to modest losses above $5,000 ahead of US data

Gold sticks to modest intraday losses through the first half of the European session, though it holds comfortably above the $5,000 psychological mark and the daily swing low. The outcome of Japan's snap election on Sunday removes political uncertainty, which along with signs of easing tensions in the Middle East, remains supportive of the upbeat market mood. This turns out to be a key factor exerting downward pressure on the safe-haven precious metal.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.