GBP/USD could breach the 1.2200 near term – UOB

Pablo Piovano FXStreet

Cable’s downside momentum could break below the 1.2200 support in the next weeks, suggested FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “While we expected GBP to weaken yesterday, we were of the view that ‘the chance for a break of the major support at 1.2250 is not high’. GBP subsequently popped to a high of 1.2400 before dropping below 1.2250 (low of 1.2238). Downward momentum is building quickly and a break of 1.2200 would not be surprising. That said, the next support at 1.2140 is likely out of reach for now. The downward pressure is intact as long as GBP does not move above 1.2320 (minor resistance is at 1.2280).”

Next 1-3 weeks: “We have expected a weaker GBP since last Friday (06 May, spot at 1.2370). As GBP declined, in our latest narrative from Tuesday (10 May, spot at 1.2325), we highlighted that the risk for GBP is still on the downside but GBP has to break 1.2250 before a move to 1.2200 is likely. GBP cracked 1.2250 yesterday and the improved downward momentum suggests that it could breach 1.2200 as well. The next support is at 1.2140. Overall, only a break of 1.2380 (‘strong resistance’ level was at 1.2420 yesterday) would indicate that the current weakness has stabilized.”

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 hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold retains bullish bias amid Fed rate cut bets, ahead of Fed Minutes

Gold sticks to modest intraday gains through the early European session, reversing a major part of the previous day's heavy losses of more than 2%, to the $4,843-4,842 region or a nearly two-week low. That said, the fundamental backdrop warrants caution for bulls ahead of the FOMC Minutes, which will look for more cues about the US Federal Reserve's rate-cut path.

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.