British Pound: Downside pressure persists against US Dollar - UOB

FXStreet Insights Team FXStreet

UOB’s Quek Ser Leang notes GBP/USD rebounded from 1.3479 to close at 1.3535 after an overdone drop, with intraday price action expected to consolidate between 1.3485 and 1.3540. On a 1–3 week view, a close below 1.3495 would likely trigger a break of 1.3475, while resistance at 1.3560 caps the upside. The broader pullback has scope to extend toward 1.3410.

Range trade but watch key supports

"24-HOUR VIEW: GBP fell sharply to a low of 1.3493 last Thursday. On Friday, we indicated that “the sharp drop appears to be overdone, and instead of continuing to decline, GBP is more likely to consolidate between1.3495 and 1.3535.” The subsequent price movements did not unfold as expected. GBP fell briefly to 1.3479 before snapping back up to a high of 1.3535. Given that the brief decline did not result in any increase in downward momentum, we continue to expect GBP to consolidate today, most likely between 1.3485 and 1.3540."

"1-3 WEEKS VIEW: Last Friday (11 Sep, spot at 1.3515), we highlighted that “downward momentum is starting to build, and if GBP closes below 1.3495, it will then likely break the next support at 1.3475 as well.” GBP subsequently dropped to a low of 1.3479 before rebounding to close 0.19% higher at 1.3535. There has been no further increase in downward momentum, but our view remains unchanged as long as GBP holds below 1.3560 (no change in ‘strong resistance’ level)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold: Fed’s rate decision to drive the next move

Gold reflects a subdued performance at the start of the Federal Reserve’s (Fed) monetary policy week at around $4,330. Fed’s interest rate expectations heavily influenced last week after the release of the hot United States (US) Producer Price Index (PPI) and Consumer Price Index (CPI) reports for August.

Pi Network extends gains as ecosystem development supports recovery

Pi Network (PI) extends its recovery on Monday, trading above $0.097 after two consecutive weeks of gains. Continued ecosystem development and improved developer tools are boosting utility. Meanwhile, the technical indicators point to a tentative recovery, but overhead Exponential Moving Averages remain a challenge and cap PI gains.

Canada CPI expected to show steady inflation in August

Canada’s August Consumer Price Index figures will be the focus of attention when published on Monday. Indeed, Statistics Canada data will provide markets with an update on price pressures following the Bank of Canada’s September 2 meeting, when officials kept the interest rate steady at 2.25%, broadly in line with analyst consensus.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.