GBP/USD carves higher low near 1.3030 – Société Générale

FXStreet Insights Team FXStreet

GBP/USD is showing early signs of recovery, forming a higher low at 1.3030 and breaking the descending channel, with potential upside toward 1.3300 if support holds, Société Générale's FX analysts note.

GBP/USD breaks upper limit of descending channel

"GBP/USD has carved out a higher low near 1.3030 than the one achieved in first week of November near 1.3000. It has crossed the upper limit of the descending channel that had encompassed recent decline."

"A short-term up move towards the confluence of 50-DMA and 200-DMA near 1.3300 cannot be ruled out. If the pair overcomes this hurdle, a larger up move may materialize. Defence of 1.3030 will be crucial for persistence in rebound."

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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold weakens further below $4,050; looks to US NFP for fresh impetus

Gold extends the previous day's retracement slide from a two-week high, weakening further below $4,050 during Friday’s Asian session amid modest US Dollar strength. The USD Index builds on its recovery from the lowest level since late September, and is seen weighing on the commodity. The downside, however, seems limited as traders await the release of the closely watched US monthly employment details before placing aggressive directional bets.

Zcash defies crypto market sell-off as NU7 upgrade fuels breakout hopes

Zcash (ZEC) shows resilience above $1,300 on Friday, defying the broader cryptocurrency market sell-off, which saw over $1 billion in liquidations the previous day. This strength aligns with Network Upgrade 7 (NU7), scheduled for Friday, which enables faster payments and disables older transaction pools.

Neither the election nor the US Dollar: Why Friday's payrolls hold the key to Gold's next move

Gold has climbed back above $4,000 as the US Dollar weakened following a Democratic sweep in the US midterm elections. However, with every Gold rally facing heavy selling throughout the year, investors are looking to Friday's Nonfarm Payrolls report to determine whether this move marks a sustainable breakout or just another temporary rebound.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.