GBP/USD: Bulls may test 1.2900/50 near term – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is a marginally better performer among the core majors so far today, with gains supported by further signs of a growth renaissance in the economy.

GBP set to rise towards 1.2900/50

“June GDP was unchanged in the month, as expected, while UK Q2 GDP rose 0.6% q/q, also in line with expectations. June Industrial Production rose a stronger than forecast 0.8% m/m. Manufacturing jumped 1.1%, well ahead of calls for a 0.2% gain. Firm growth trends will not stop the BoE from easing rates again in the next few months but the data tilt risks a little further against a September move.”

“Sterling’s rebound from the upper 1.26s has paused over the past couple of sessions but price patterns are still leaning bullish for the pound as spot consolidates gains. A bullish flag/wedge pattern may be developing on the intraday chart. Gains through 1.2865/75 in the next day or so should be the cue for the GBP rise to resume towards 1.2900/50.”

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.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.