GBP/USD extend post-CPI rally towards 1.2750, US PPI eyed

Dhwani Mehta FXStreet

The GBP/USD pair has entered a bullish consolidation phase in the mid-European session, as the bulls face exhaustion after the latest move higher above 1.27 handle.

GBP/USD looks to regain 5-DMA at 1.2762

The major witnessed a fresh buying-wave in early Europe, and since then keeps the recovery mode intact, especially in light of an unexpected rise in the UK CPI numbers for May, as focus shifts from politics to economic fundamentals.

UK CPI rises further in May, its highest since April 2012

Moreover, risk-on rally seen in the European indices combined with positive oil prices boosts the sentiment around the risk currency GBP. Also, renewed weakness seen behind the US dollar across the board, collaborates to the bounce in cable.

Later today, the pair could advance further towards the key support-turned resistance located at 1.2770 levels, should the US PPI numbers disappoint markets and added to further losses in the buck.

However, any pullbacks in the GBP/USD pair could be largely seen as a good selling opportunity, as political uncertainty in the UK and Brexit deal jitters will continue to undermine the pound in the near-term.

GBP/USD Levels to consider

Karen Jones, Analyst at Commerzbank noted: “GBP/USD is negative very near term. GBP/USD remains under pressure following the political chaos that has ensued following the UK general election last week. The market broke down from the 1.2775-1.3060 range and this is now acting as formidable nearby resistance. The intraday Elliott wave count is suggesting that we will see failure here ahead of further losses. We look for losses to extend to the 200 day ma at 1.2571 and then the 1.2468/61.8% retracement. There is potential for the 1.2366 the 10th April low.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities 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.