GBP/USD outlook: Cable – bulls hold grip ahead of key US data

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable jumped above 1.3400 mark on Tuesday morning after better than expected December Manufacturing and Services PMIs (preliminary) offset weak numbers from labor report.

Sterling maintains firm tone and holding just under new high in almost two months, ahead of key economic event of the day – releases of combined (Oct/Nov) US labor report, Oct retail sales and Dec preliminary PMIs.

The data (particularly from labor sector) will provide necessary information to the US central bank in shaping their monetary policy in the near future, as markets widely expect another rate cut in January and more dovish stance from Fed.

Technical picture is firmly bullish on daily chart, with the price action establishing above the top of very thick and sideways-moving daily cloud, MAs in bullish configuration (with the latest formation of 10/200DMA golden cross, underpinning), though partially countered by fading positive momentum.

Near-term action is expected to remain biased higher while above cloud top (1.3367, reinforced by rising daily Tenkan-sen), with acceleration through Thursday’s spike high (1.3438) to expose 1.3471 (Oct 17 lower top) and 1.3500 (psychological).

Res: 1.3438; 1.3471; 1.3500; 1.3527.
Sup: 1.3400; 1.3367; 1.3342; 1.3295.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD holds above 1.1800 after US data

EUR/USD alternates gains with losses in the low-1.1800s on Wednesday in a context of modest gains in the Greenback. Meanwhile investors continue to assess the latest advanced inflation data in the euro area and the lower-than-expected weekly ADP figures and ISM Services PMI on the US calendar.

GBP/USD declines below 1.3700 as USD gains traction

GBP/USD comes under bearish pressure in the American session and trades in the red below 1.3700. The US Dollar gathers strength after the latest batch of US data and makes it difficult for the pair to hold its ground. On Thursday, the Bank of England will announce policy decisions.

Gold retreats below $5,000 following earlier rally

Gold loses its bullish momentum and trades below $5,000 in the second half of the day on Wednesday as the US Dollar finds a foothold. The data from the US showed that private sector employment rose less than expected in January, while the service sector preserved its growth momentum.

Crypto Today: Bitcoin, Ethereum, XRP tick up despite macro uncertainty, retail exodus

Bitcoin rises above $76,000 following an extended decline to $72,946 the previous day as Fed-related headlines keep investors on edge. Ethereum advances toward the $2,300 hurdle amid low retail interest, with futures Open Interest falling to $26.3 billion.

Should investors abandon AI as software stocks slide?

AI is not being abandoned by markets. It is being priced more carefully. Over the past few weeks, the underperformance of software and SaaS stocks has sparked a familiar question: is the AI trade breaking down? The answer is no.

Ripple stabilizes amid mixed signals as ETF inflows resume despite low retail activity

Ripple hovers around the $1.60 pivotal level at the time of writing on Wednesday, reflecting stable but weak sentiment across the crypto market. Intense volatility triggered a brief sell-off on Tuesday, driving the remittance token to pick up liquidity at $1.53 before recovering to the current level.