GBP/USD: Corrective decline could extend to 1.3850 – UOB

Pablo Piovano FXStreet

There is still scope for Cable to recede to the 1.3850 area in the next weeks, according to UOB Group’s FX Strategists.

Key Quotes

24-hour view: “We expected GBP to ‘consolidate and trade within a 1.3920/1.4030 range’ yesterday. GBP traded between 1.3905 and 1.3999 before closing little changed at 1.3926 (+0.02%). Downward momentum has improved a tad and GBP could edge below last week’s low at 1.3890. In view of the lackluster momentum, any further decline is unlikely to threaten the major support at 1.3850. Resistance is at 1.3960 followed by 1.3990.”

Next 1-3 weeks: “There is not much to add to our update from last yesterday (01 Mar, spot at 1.3975). As highlighted, the current movement is viewed as the early stages of a corrective pullback. Any pullback is likely limited to a test of 1.3850 for now. On the upside, a break of 1.4050 (‘strong resistance’ level previously at 1.4110) would indicate the downside risk has dissipated.”

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 treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.