GBP/USD: rally toward 1.4345 continues

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4319

Pound benefiting from broad dollar's weakness.
US data up next could temporarily interrupt the rally, but hardly affect the dominant bullish trend.

The GBP/USD trades above the 1.4300 level, the second best high ever since the Brexit referendum, when the pair shed over 1,500 pips in a day. The Pound is benefiting from broad dollar's weakness and the absence of local data that can affect it negatively. The UK will have quite a busy week, starting tomorrow with the monthly employment data release, and later on Wednesday with fresh inflation figures. Both releases usually have a strong impact on Pound, but the largest one will probably take place on Wednesday when investors will be able to compare wages' growth with inflation and infer the possible effects on future BOE's decisions.

Technically, the pair is short-term bullish, as in the 4 hours chart, the 20 SMA maintains a strong upward slope near the daily low, while technical indicators reached overbought territory and turned flat, reflecting the current wait-and-see stance ahead of US data, including March retail sales and the preliminary NY Empire manufacturing index for April. Nevertheless, seems unlikely that the greenback will get too much love even with good macroeconomic numbers, and if it does, it will likely be temporal. January high is at 1.4345, now the immediate resistance and possible bullish target, with a break above it probably favoring an extension up to the 1.4400 figure.

Support levels: 1.4295 1.4260 1.4225

Resistance levels: 1.4345 1.4380 1.4400

View Live Chart for the GBP/USD

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.