GBP/USD stays below a downside resistance line

JFD Team JFD

GBP/USD traded higher yesterday, after hitting once again the key support of 1.3670. That said the recovery stayed limited near the 1.3775 zone. Even if we see another round of buying, the rate continues to trade below the tentative downside resistance line drawn from the high of February 24^th, and thus, we would consider the near-term outlook to be cautiously negative.

As we already noted, another round of buying is possible, which could take the rate near the aforementioned downside line. The bears may regain control from near that zone and perhaps push the battle lower for another test near 1.3670. If that barrier is not able to stop the slide this time around, its break would confirm a forthcoming lower low and may see scope for declines towards the 1.3563 territory, defined as a support by the low of February 4^th.

Shifting attention to our short-term oscillators, we see that the RSI is flat near its 50 line, while the MACD, although negative, lies above its trigger line. The RSI reveals no directional momentum, but the fact that the MACD runs above its trigger line keeps the door open for some more recovery before the bears decide to take charge again.

Now, in order to start examining the bullish case, we would like to see a break above the 1.3920 obstacles, marked by the high of April 6^th. This will confirm a forthcoming higher high and may initially pave the way towards the psychological zone of 1.4000, which prevented the rate from drifting further north between March 1^st and 18^th. If the bulls are strong enough to overcome that hurdle this time around, we may experience extensions towards the 1.4080 barriers, marked as a resistance by the inside swing low of February 24^th.

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD off highs, back to around 1.1900

EUR/USD keeps its strong bid bias in place despite recedeing to the 1.1900 zone following earlier peaks north of 1.1900 the figure on Monday. The US Dollar remains under pressure, as traders stay on the sidelines ahead of Wednesday’s key January jobs report, leaving the pair room to extend its upward trend for now.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure

Bitcoin hovers around $70,000, up near 15% from last week's low of $60,000 despite low retail demand. Ethereum delicately holds $2,000 support as weak technicals weigh amid declining futures Open Interest. XRP seeks support above $1.40 after facing rejection at $1.54 during the previous week's sharp rebound.

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.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.