GBP/USD drops further, challenges 1.2920/10

Pablo Piovano FXStreet

The selling pressure around the British pound is now gathering extra pace, relegating GBP/USD to test daily lows in the proximity of 1.2920.

GBP/USD looks to EUR/GBP

Spot is deriving further selling pressure from the unabated upside momentum in EUR/GBP, which continues its march north towards the key 0.8700 neighbourhood.

Adding to GBP weakness, BBA’s Mortgage Approvals have missed estimates during August, coming in just below 37K vs. 37.2K expected and down from nearly 37.7K from the previous month.

In the meantime, the pair is trading at shouting distance from multi-week lows in the 1.2910 area, opening the door for a deeper pullback in case of positive results from today’s US docket: New Home Sales and the Dallas Fed manufacturing index, followed by speeches by FOMC’s Kashkari, Tarullo and Kaplan.

GBP/USD levels to consider

As of writing the pair is losing 0.18% at 1.2932 facing the next support at 1.2912 (low Sep.23) followed by 1.2863 (low Aug.15) and then 1.2796 (2016 low Jul.6). On the other hand, a breakout of 1.3125 (high Sep.22) would open the door to 1.3447 (high Sep.6) and finally 1.3584 (100-day sma).

Sell 38%

Buy 62%

Avg Sell Price 1.3067

Avg Buy Price 1.3204

Liquidity Distribution

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

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.