GBP/USD aims for rebound but bearish risks linger [Video]

Christina Parthenidou XM

GBPUSD remains resilient within a sideways channel and around the 1.4100 level, where the 23.6% Fibonacci of the latest upleg also resides (1.3668 – 1.4248).

The recent soft dwindle below the 20-day simple moving average (SMA) and the blue Kijun-sen line favors a negative extension towards the important long-term ascending trendline and the 50-day SMA, both converging to the 38.2% Fibonacci of 1.4026. Slightly beneath, the 50% Fibonacci of 1.3958 may attempt to catch the fall ahead of the 61.8% Fibonacci of 1.3852, while a dip below the 1.3800 number could spark a more aggressive sell-off towards the two-month low of 1.3668.

Likewise, the RSI and the MACD warrant some caution too, as the former has yet to change its negative trajectory despite the consolidation around its 50 neutral level, while the latter continues to decelerate below its red signal line.

Nevertheless, the longer the price trades around 1.4100 the larger the odds for an upside reversal. In this positive scenario, the tough 1.4235 – 1.4250 resistance region will come first into view, and should it give way this time, the door would open for the 2018 peak of 1.4375. Higher, the next stop could be near the 1.4665 barrier from 2016.

Summarizing, GBPUSD keeps facing downside risks in the short-term picture, though the longer the price remains resilient around the 1.4100 level, the smaller the likelihood for a bearish move.

Author

Christina Parthenidou

Christina joined the XM investment research department in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

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.