GBP/USD Forecast: Under mild-pressure, corrective decline may continue

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3678

UK PM Boris Johnson hinted the government is planning a way out of lockdown.
A scarce macroeconomic calendar in the United Kingdom seems to help pound.
GBP/USD is easing within range, further slides expected once below 1.3655.

The GBP/USD pair has reached a higher high for the year at 1.3758 early London, to finally give up to risk aversion. The pair fell to 1.3658 as investors rushed into the safe-haven dollar at the beginning of the US session, to later bounce towards the current 1.3700 area. The UK didn’t publish macroeconomic data, but UK Prime Minister Boris Johnson hinted a way out of the current lockdown, as he expected to report in the next few weeks, “how to exit pandemic," adding that a perpetual lockdown is not the answer. He added that the government hopes to reopen schools by March 8.

The UK won’t publish macroeconomic data for the rest of the week, with the market instead focusing on US figures and UK coronavirus-related news.

GBP/USD short-term technical outlook

The GBP/USD pair trades below the 1.3700 level ahead of the Asian opening, as the pair seems resilient to the dollar’s demand. The near-term picture is neutral-to-bullish as it continues trading above the longer moving averages while struggling around the 20 SMA, which anyway lacks directional strength. Technical indicators are mute just above their midlines, indicating paused buying interest, instead of upward exhaustion. The pair still has room to advance, particularly if it storms through 1.3760. The pair could gain bearish strength in the near-term on a break below 1.3655

Support levels: 1.3655 1.3605 1.3560

Resistance levels: 1.3725 1.3760 1.3810

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 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.