GBP/USD outlook: Cable fell to seven-week low on negative rates/trade talks concerns; psychological 1.20 support comes in focus

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable is consolidating above new seven-week low (1.2074) posted overnight, extending weakness after last week's nearly 2.5% fall. Friday's long bearish candle (the pair was down 1.2% for the day) weighs, as weekly close above pivotal supports at 1.2174/64 (Fibo 38.2% of 1.1409/1.2647 / five-week range low) generated bearish signal on emerge from extended sideways mode and confirmation of a double-top. Comments from BoE's official that the central bank for more options such as negative interest rates and disharmony of UK/EU trade talks, further pressure pound. Negative daily studies add to weak structure as bears focus targets at 1.2028 (50% of 1.1409/1.2647) and 1.20 (psychological support), loss of which would spark stronger bearish acceleration. The upside should be ideally capped by broken pivots at 1.2164/74 (reinforced by falling 5DMA), with repeated daily close below these levels needed to confirm bearish stance. Only break and close above falling 10DMA (1.2281) would sideline bears.

Res: 1.2164; 1.2174; 1.2200; 1.2281
Sup: 1.2074; 1.2028; 1.2000; 1.1882

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2343
2. R2 1.2291
3. R1 1.2206
PP 1.2154
1. S1 1.2068
2. S2 1.2017
3. S3 1.1931

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 softens below 1.1800 on Fed hawkish remarks

The EUR/USD pair edges lower to around 1.1775 during the early Asian session on Wednesday, pressured by a renewed US Dollar demand. Traders await the US President Donald Trump's State of the Union address later on Wednesday for clarity on fiscal policies.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold consolidates below $5,150 as traders await Trump's State of the Union address

Gold steadies below the $5,150 level following the previous day's pullback from the monthly peak as traders opt to wait on the sidelines ahead of Trump's State of the Union address. In the meantime, trade-related uncertainties and geopolitical risks seem to act as a tailwind for the safe-haven bullion. However, the Fed's less hawkish outlook underpins the US Dollar, which, along with a positive risk tone, caps the upside for the non-yielding yellow metal.

Coinbase launches stocks and ETF trading amid ongoing plans for all-in-one platform

Coinbase has launched stocks and ETF trading for US customers on its platform, according to an X post on Tuesday. The service offers commission-free trading available 24 hours a day, five days a week, for eligible securities. Traders deposit US dollars or USDC to fund positions and access fractional shares as low as $1.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.