GBP/USD: A break above 1.2700 to turn the momentum to the upside – UOB Group

FXStreet Insights Team FXStreet

Increase in momentum is beginning to fade. If the Pound Sterling (GBP) breaks above 1.2700, it would mean that it is not weakening further, analysts at UOB Group note.

A break above 1.2700 to turn GBP higher

24-HOUR VIEW: “We noted last Friday that 'the price movements are likely part of a sideways trading phase,' and we expected GBP to trade between 1.2620 and 1.2670. Our expectations turned out to be correct, as GBP traded in a range of 1.2620/1.2670, closing largely unchanged (1.2646, +0.05%). There has been no increase in downward or upward momentum, and further sideways trading seems likely. Expected range for today: 1.2625/1.2675.”

1-3 WEEKS VIEW: “We have held a negative view in GBP for about 2 weeks now. In our latest narrative from last Thursday (27 Jun, spot at 1.2620), we noted that 'downward momentum is picking up again, and a break of 1.2600 would not be surprising.' Since then, GBP has not been able to make any further headway on the downside. The increase in momentum is beginning to fade, and if GBP breaks above 1.2700, it would mean that GBP is not weakening further.”

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.

GBP/USD flirts with tops near 1.3470

GBP/USD manages to regain composure and challenge the area of daily highs around 1.3470 on Friday. Cable picks up pace despite marginal gains in the Greenback in a context of swelling geopolitical tensions and rising global oil prices.

EUR/USD trims losses, back above 1.1500

EUR/USD picks up some pace and bouces off earlier lows, reclaiming the 1.1500 threshold and beyond at the end of the week. The pair’s modest pullback follows a persistent risk-averse market mood and renewed buying interest for the US Dollar.

Gold: The $4,000 mark holds the downside for now

Gold faces renewed selling pressure, falling sharply toweard the $4,000 mark per troy ounce as the US Dollar regains momentum. Escalating US-Iran tensions are keeping inflation concerns and expectations of further Fed rate hikes alive, weighing further on the yellow metal.

Bitcoin eyes 50-day EMA breakout, Ethereum consolidates, XRP steadies

Bitcoin, Ethereum, and Ripple trade near key technical levels on Friday as the broader cryptocurrency market pauses following last week's recovery. BTC is approaching the 50-day Exponential Moving Average while ETH continues to consolidate between two major EMAs.

Warsh needs to restore his reputation

We were glad to see our deeply negative reaction to the Warsh press conference was not some personal peculiarity. Just about everybody in the financial press felt the same way. The consensus is building it’s not the Fed in the dog-house but only Warsh. Today the WSJ changed it tune and blasted Warsh—"the honeymoon is already over..”

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.