British Pound Sterling Price News and Forecast: GBP/USD faces the next resistance at 1.2200/20

FXStreet Team FXStreet

GBP/USD surges above 1.2100 as US dollar collapses

The GBP/USD rose above 1.2000 at the beginning of the American session and recently reached a fresh one-week high at 1.2160. It is trading near the top, almost seven hundred pips above the weekly low.

The ongoing recovery in Cable faces the next resistance at 1.2200/20 while the 1.1970/80 area has become a key short-term support. Technical indicators in the four hours chart are approaching overbought levels but the momentum remains solid with no signs of correction.

GBP/USD analysis: Trades within rising wedge

Yesterday, the GBP/USD exchange rate revealed the upper wedge pattern. During Thursday morning, the rate was trading in the 1.1900 area.

From the theoretical point of view, it is likely that the currency pair could continue to trade within the given pattern. In this case the pair could reach the 1.2000 level.

EUR/USD looks sidelined below 1.1600

EUR/USD remains on the back foot in the latter part of the NA session on Thursday, now attempting a consolidative theme in the sub-1.1600 region. A more cautious market mood, driven by the escalating conflict in the Middle East, together with broad-based strength in the US Dollar, is favouring the continuation of the leg lower in spot.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

Crypto Today: Bitcoin, Ethereum, XRP hold weekly gains despite US-Iran war

The cryptocurrency market is gaining strength on Thursday, building on Wednesday's upswing, which saw Bitcoin reach a weekly high above $74,000. Ethereum and Ripple are moderating their recent gains amid uncertainty stemming from the escalating war in the Middle East.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.