GBP/USD faces a corrective downside to1.3850 – UOB

Pablo Piovano FXStreet

Cable’s ongoing leg lower could extend to the mid-1.3800s, according to UOB Group’s FX Strategists.

Key Quotes

24-hour view: We expected GBP to weaken last Friday but we were of the view that ‘the support at 1.3900 is unlikely to come into the picture’. However, GBP dropped to 1.3890 before rebounding quickly. Downward momentum has waned and this coupled with oversold conditions suggests further GBP weakness is unlikely. GBP is more likely to consolidate and trade within a 1.3920/1.4030 range.”

Next 1-3 weeks: “There is not much to add to our update from last Friday (26 Feb, spot at 1.3975). As highlighted, the recent positive phase in GBP has come to an end. 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 1.4110 (no change in ‘strong resistance’ level) 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 faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.