GBP/USD Forecast: pressuring weekly lows on soft UK data

Valeria Bednarik FXStreet

Worst-than-expected UK data sent the Pound to the 1.2430 region against its American rival, not far from the weekly low set at 1.2418. In February, manufacturing production fell by 0.1, monthly basis, ending up 3.3% when compared to a year earlier, while industrial production fell by 0.7% in the month, against expectations of a 0.2% advance. Also, the deficit on trade in goods and services widened to £3.7 billion in February from a revised deficit of £3.0 billion in January. Still pending of release is the NIESR GDP estimate for the three months to March.

Further dollar gains will depend on the outcome of the US Nonfarm Payroll report, expected to indicate that the country added 180K new jobs in March. As usual lately, much of the attention will be placed in wages' growth, particularly if the headline reading comes in line with expectations.

The technical picture for the pair is bearish, but of course, is on Payrolls' outcome the next move. In the 4 hours chart, the price is around the 38.2% retracement of the January rally, below a bearish 20 SMA and with technical indicators heading south below their mid-lines. 1.2410 is the immediate support, ahead of 1.2370. Below this last, 1.2310/30 is the next bearish target.

A recovery beyond 1.2460 exposes 1.2500, while beyond this last, the pair can rally up to the 1.2540/60 region.

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.