GBP/USD Forecast: retreating from a key resistance, could slide back below 1.3700 mark

Haresh Menghani FXStreet

The GBP/USD pair had a good two-way movement on Tuesday, initially was weighed down by a dip in the UK CPI but managed to find some support at lower levels on the back of some renewed US Dollar selling pressure. The pair built on overnight rebound and jumped to fresh post-Brexit highs during the Asian session on Wednesday.

The up-move, however, ran into a key resistance near the 1.3835 region, marking Feb. 2016 lows, and was capped by a solid US Dollar recovery. In absence of any major market moving economic releases from the UK, the USD price dynamics would continue to act as an exclusive driver of the pair's momentum on Wednesday.

Technically, the pair remains positioned in near-term overbought conditions and repeated failures to sustain above the 1.3800 handle has now increased possibilities for a near-term correction. A follow-through weakness below 1.3740 level would add credence to the expectations and accelerate the profit-taking slide towards the 1.3700 handle en-route 1.3655 intermediate level and the 1.3615-10 strong support.

On the upside, momentum beyond the 1.3800 handle might continue to confront fresh supply near the 1.3835 region, which if cleared should pave the way for an extension of the pair's bullish trajectory towards reclaiming the 1.3900 round figure mark.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.