Further downside in GBP/USD unlikely – UOB

Pablo Piovano FXStreet

According to FX Strategists at UOB Group, further retracement in Cable appears to be losing momentum.

Key Quotes

24-hour view: “Against our expectation for a test of 1.2195, GBP dropped quickly from 1.2172 to 1.2105 before recovering. The price action suggests GBP has moved into a consolidation phase. In other words, GBP is expected to trade sideways for today, albeit at a lower range of 1.2100/1.2165”.

Next 1-3 weeks: “While the ‘key resistance’ at 1.2195 is still intact (high of 1.2175 yesterday), shorter-term indicators continue to suggest that the odds for further GBP have diminished. As highlighted yesterday (19 Aug, spot at 1.2155), in order to ‘revive’ the current flagging downward momentum, GBP has to move and stay below 1.2070 soon or a break of 1.2195 would indicate that last week’s 1.2015 low is the extent of the ‘negative phase’ that started in late July (see annotations in the chart below). To put it another way, only a NY closing below 1.2070 would indicate that GBP is ready to challenge the next major support at 1.1985 (low in 2017)”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD recovers modestly, stays below 1.1900

EUR/USD gains traction and edges higher toward 1.1900 in the second half of the day on Thursday. The US Dollar struggles to benefit from the upbeat employment data following an initial positive reaction, allowing the pair to find a foothold.

GBP/USD holds above 1.3600 after UK data dump

GBP/USD clings to moderate gains above 1.3600 following the release of the UK Q4 preliminary GDP, which showed that the UK economy expanded at an annual pave of 1% in Q4. Meanwhile, the improving risk mood causes the USD to lose interest and helps the pair edge higher.

Gold retreats from February highs, holds above $5,000

Gold corrects lower after touching a fresh February-high above $5,100 but manages to hold comfortably above $5,000. The positive shift seen in risk mood limits the safe-haven precious metal's strength, while the trading action remains choppy ahead of Friday's key US inflation data.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.