GBP/USD remains in bearish trend after hawkish “Powell”

Gregor Horvat Wavetraders

So, the USD turned up recently as investors again looking to sell it as Powell signaled that more hikes can be needed in the future, but it will depend on the data. As a result, US yields stabilized and stocks hit resistance while DXY comes higher and can still target the pre-NFP levels. This can be important short-term level; if it DXY goes above 106.40 then I think EUR and GBP will see more weakness. In fact, looking at the 4h time frame on cable and only three wave rally from the low, with wave (C) failing at the upper corrective channel, it appears that bearish trend is still here and ready to resume, especially if a price drops below 1.2190 bearish level. Then I think 1.2030 can come back in play.

Get Full Access To Our Premium Elliott Wave Analysis For 14 Days. Click here.

Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.