GBP/USD Forecast: Rising odds for a break below 1.2000

Price action in GBP/USD keeps pointing to extra losses.
Brexit limbo and likeliness of ‘no deal’ weigh on the Sterling.
BoE remains in a ‘wait-and-see’ mode.

Pablo Piovano FXStreet

The Sterling remains mired within the negative territory so far today and appears that a break below the psychological support at 1.20 the figure is just around the corner.

In the meantime, the outlook on the British Pound is expected to remain gloomy to say the least, always on the back of rising uncertainty stemming from the UK government and utter absence of progress towards an outcome other than a ‘no deal’ scenario in the Brexit negotiations.

In addition, the Bank of England remains vigilant on both data and Brexit developments, although without giving markets any hint of its probable moves in the next months.

If the selling impetus accelerates (most likely scenario) and 1.20 gives way, Cable should then face the 2017 low at 1.1985 will be the next immediate target ahead of the ‘flash crash’ (October 2016) in the 1.1900 neighbourhood. On the unlikely event of a serious move higher, the 21-day SMA at 1.2234 emerges at the interim hurdle.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD climbs to two-week highs beyond 1.1900

EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.

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 treads water around $5,000

Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

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.