British Pound: Pressure builds on 1.3160 support against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann stay bearish on GBP/USD after the pair slipped to 1.3183, with downside momentum modest but building. Intraday, he sees scope for a test of the major 1.3160 support, while resistance is at 1.3235. Over 1–3 weeks, they still look for a break below 1.3160, targeting 1.3110 if 1.3265 caps.

Sterling remains on the defensive

"24-HOUR VIEW: GBP rebounded to a high of 1.3272 two days ago before pulling back. When GBP was at 1.3250 in the early Asian session yesterday, we highlighted that “the price action did not result in any clear shift in either downward or upward momentum,” and we expected GBP to “range-trade between 1.3205 and 1.3275.” Our assessment was incorrect, as instead of range-trading, GBP fell to a low of 1.3183. Downward momentum has increased, but not significantly. Today, GBP could edge lower and test the major support at 1.3160. Currently, it is too early to determine whether GBP can break and hold below this level. To keep the momentum going, GBP must not break above 1.3235 (minor resistance is at 1.3215)."

"1-3 WEEKS VIEW: We turned negative on GBP last Thursday (18 Jun, spot at 1.3300). In our most recent narrative from Friday (19 Jun, spot at 1.3205), we indicated that GBP “is expected to continue to weaken, and the next level to watch is 1.3160.” Although 1.3160 remains untested, as long as 1.3265 (‘strong resistance’ level previously at 1.3305) is not breached, there remains a chance for a break below this level. Looking ahead, the next level to watch below 1.3160 is 1.3110."

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

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 hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.