Pound surged overnight, extending its gains during Asian hours up to 1.5722 against the greenback. But the GBP/USD pair turned south with the European opening, trading already below Friday’s close: dollar strengthens across the board whist Pound self weakness due to diminishing chances of a rate hike for next year in the UK.
The pair’s ruling trend remains firm in place, with the 4 hours chart showing price retraced from a clearly bearish 20 SMA offering dynamic resistance around the mentioned daily high, while indicators turned strongly south in negative territory, after correcting oversold readings: 1.5589, this year low comes as immediate support with some consolidation around it expected if reached within the next couple hours. But a break below it should see a downward extension towards 1.5550 price zone, in route to the 1.5500 figure. Short term, the first resistance stands at 1.5660, with a recovery above it probably signaling a retest of the 1.5700 level.
View Live Chart for GBP/USD
The pair’s ruling trend remains firm in place, with the 4 hours chart showing price retraced from a clearly bearish 20 SMA offering dynamic resistance around the mentioned daily high, while indicators turned strongly south in negative territory, after correcting oversold readings: 1.5589, this year low comes as immediate support with some consolidation around it expected if reached within the next couple hours. But a break below it should see a downward extension towards 1.5550 price zone, in route to the 1.5500 figure. Short term, the first resistance stands at 1.5660, with a recovery above it probably signaling a retest of the 1.5700 level.
View Live Chart for GBP/USD
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.