GBP/USD Price Forecast: Cautious ahead of key week

GBP/USD manages to keep the trade above the 1.30 mark.
Debate around Brexit is expected to dominate the scenery this week.

Pablo Piovano FXStreet

The sterling gives away part of the gains recorded last Friday on the back of the resumption of some mild buying interest surrounding the greenback on Monday.

Despite Cable has regained the psychological 1.30 mark in past sessions and the move allow for some extra upside in the short-term horizon, the scenario looks fragile for the quid.

Indeed, Brexit headlines are posed to dominate the price action and the volatility in the British pound in the next days ahead of the crucial EU Summit later in the week (October 15-16).

Near-term Outlook

The continuation of the upside momentum in GBP/USD could extend to the Fibo leve just below 1.3200 the figure ahead of 2020 highs around 1.3480 (September 1). This move, however, would need a slew of really positive news around Brexit, which does not seem likely just now. On the downside, the loss of the 1.3000 level carries the potential to re-visit the 1.2870 area (Fibo level) ahead of the key 200-day SMA, today at 1.2709.

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

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.