GBP/USD challenges 2-week old trading range support near mid-1.3400s

Haresh Menghani FXStreet

• Persistent USD buying interest keeps exerting downward pressure on Friday.
• GBP further weighed down by the recent BoE dovish tilt and Brexit concerns.
• A decisive break below mid-1.3400s might point to a fresh bearish breakdown.

The GBP/USD pair extended its steady decline from an intraday high level of 1.3528 and is currently placed just above over 2-week old trading range support.

In absence of any fresh fundamental development/economic releases, the pair's fall of around 75-80 pips could be attributed to resurgent USD demand. Following a brief pause earlier today, the US Dollar resumed with its upsurge to hit fresh multi-month lows and was seen as one of the key factors exerting downward pressure on the major.

Meanwhile, the latest dovish BoE tilt, and reemerging Brexit concerns continued dampening sentiment surrounding the British Pound and further collaborated to pair's fall back to weekly lows, which if broken would confirm a fresh bearish breakdown, paving way for an extension of the pair's near-term bearish trajectory.

Technical levels to watch

A convincing break below mid-1.3400s is likely to accelerate the slide towards the 1.3400 handle before the pair eventually extends the downfall further towards the 1.3300 handle in the near-term.

On the upside, any recovery attempts back above the key 1.3500 psychological mark might now confront fresh supply near the 1.3530 level and is followed by 200-DMA resistance near the 1.3555-60 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

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.