GBP/USD: Selling pressure increases [Video]

Richard Perry Independent Analyst

GBP/USD

Another key downside break is taking Cable ever lower within its medium term trading range with the key support band $1.2075/$1.2160 coming closer into view. Initially it had looked as though sterling was looking to build some sort of support yesterday, but the selling pressure increased as the session wore on and another negative candle has taken the market to a four week low. The move is backed by a developing downtrend of the past two and a half weeks, (falling at $1.2430 today), whilst momentum indicators also confirm the ongoing deterioration. We now see the daily RSI falling under 40 and the last time it was this low was when the $1.2160 low was formed. With Cable now making consistent lower daily highs, we look to use intraday rallies as a chance to sell for a test of $1.2160 and potentially the key medium term range low of $1.2075. The hourly chart shows how pivot levels of resistance are being left now. Yesterday’s high of $1.2390 is an increasingly important support, but equally it seems this morning, that Friday’s low around $1.2310 is becoming a new basis of resistance on a rebound. Initial support at $1.2250 is yesterday’s low.

Author

Richard Perry

Independent Analyst

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.