GBP/USD: Diminished bets for a drop to 1.0000 – UOB

Pablo Piovano FXStreet

In the opinion of FX Strategists at UOB Group Quek Ser Leang and Peter Chia, the probability of GBP/USD to drop to the parity zone seems to have lost traction for the time being.

Key Quotes

24-hour view: “Yesterday, we held the view that GBP ‘is likely to edge lower but a sustained decline below 1.0630 is unlikely’. We did not expect the volatile trade as GBP plummeted briefly to 1.0539 before rocketing to a high of 1.0917 during NY hours. Further volatility is not ruled out, albeit likely within a narrower range of 1.0670/1.0970.”

Next 1-3 weeks: “Three days ago (26 Sep, spot at 1.0600), we highlighted that in view of the impulsive downward acceleration from last Friday, a further decline in GBP to 1.0000 is not ruled out. Yesterday (28 Sep), GBP surged to a high of 1.0917. Downward momentum has waned and a breach of 1.1000 (no change in ‘strong resistance’ level from yesterday) would indicate that the weakness in GBP from 2 weeks ago has stabilized. All in, after yesterday’s price movement, the probability of GBP dropping to 1.0000 this time round has diminished considerably.”

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 remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.