GBP/USD: Bears may push towards 1.3035 – UOB Group

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is expected to continue weaken, potentially to 1.3035. The major support at 1.3000 is unlikely to come under threat, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Falling below 1.3035 may target 1.3000

24-HOUR VIEW: “When GBP was at 1.3130 yesterday, we noted that ‘there has been a slight increase in downward momentum.’ We were of the view that GBP could dip below 1.3100 but we indicated that ‘any decline is not expected to reach 1.3060.’ While our view of a lower GBP was correct, it fell more than expected to 1.3068. Not unexpectedly, the decline has led to an increase in momentum, and today, we continue to expect GBP to weaken, potentially to 1.3035. The major support at 1.3000 is unlikely to come under threat. To keep the momentum going, GBP must remain below 1.3115 with minor resistance at 1.3090.”

1-3 WEEKS VIEW: “Yesterday (09 Sep, spot at 1.3130), we noted that ‘the recent price action has resulted in a modest increase in downward momentum.’ We highlighted that ‘as long as 1.3250 is not breached, we expect GBP to drift lower, possibly reaching 1.3050.’ We added, ‘the likelihood of GBP breaking clearly below this level seems low for now.’ We did not expect GBP to drop as much and as quickly as it fell to a low of 1.3068 in NY trade. From here, we continue to expect GBP to weaken. The next level to watch is 1.3000. We will hold the same view provided that 1.3140 (‘strong resistance’ level was at 1.3250 yesterday) is not breached.”

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 hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.