GBP/USD: A test of 1.3050 remains in the pipeline – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group do not rule out a drop to 1.3050 in cable in the next weeks.

Key Quotes

24-hour view: “Yesterday, we highlighted that GBP ‘could edge higher to 1.3205 before easing off’. GBP subsequently rose to 1.3195 before dropping sharply to 1.3081 during late NY session. Despite the decline, downward momentum has not improved by much. While there is room for GBP to weaken, a break of the major support at 1.3050 appears unlikely (next support is at 1.3000). Resistance is at 1.3135 followed by 1.3180.”

Next 1-3 weeks: “In our latest narrative from yesterday (10 Mar, spot at 1.3170), we highlighted that the downside risk in GBP is intact but the chance for GBP to decline has diminished. We did not expect the subsequent sharp drop to 1.3081. From here, GBP could dip below 1.3050 but barring a surge in downward momentum, the next support at 1.3000 could be out of reach. Overall, only a breach of 1.3220 (‘strong resistance’ level was at 1.3250 yesterday) would indicate that the weak phase that started 2 weeks ago has run its course.”

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 above 1.1600 as focus shifts to US data

EUR/USD stages a modest rebound and trades in positive territory above 1.1600 in the European session on Wednesday. Improving risk sentiment makes it difficult for the US Dollar to preserve its strength and helps the pair edge higher as focus shifts to key US data releases.

GBP/USD climbs above 1.3350 on improving risk mood

GBP/USD gains traction and advances toward 1.3400 on Wednesday. Although there are no headlines pointing to a de-escalation in the Middle East conflict, the modest recovery seen in US stock index futures limit the USD's gains and help the pair hold its ground.

Gold rebounds toward $5,200 as USD retreats

Gold maintains its offered tone through European session on Wednesday and climbs to the $5,200 region. The downward correction seen in the US Dollar and the ongoing crsis in the Middle East seem to be allowing XAU/USD to preserve its recovery momentum.

ADP Employment Report set to signal stronger February jobs growth, little effect on Fed outlook

The Automatic Data Processing (ADP) Research Institute will release its monthly report on private-sector job creation for February on Wednesday. The so-called ADP Employment Change report is expected to show that the United States private sector added 50K new positions in the month, following the 22K gained in January.

Asian stocks fall as South Korea’s KOSPI slumps over 10%

Asian equities drop on Middle East tensions; the MSCI Asia Pacific Index falls up to 4%. South Korea’s KOSPI fell 10.71% near 5,170, with the Korean Won weakened past 1,500 per dollar.

Solana Price Forecast: SOL consolidation near resistance as ETF inflows offer mild support

Solana price is facing slight rejection as it approaches the upper boundary of the consolidation range at around $88 on Wednesday. Institutional demand is strengthening as spot Exchange Traded Funds recorded two consecutive inflows so far this week.