GBP/USD faces extra rangebound between 1.3810-1.4020 – UOB

Pablo Piovano FXStreet

Cable remains in a consolidative mode and is likely to keep navigating the 1.3810-1.4020 range in the next weeks.

Key Quotes

24-hour view: “Yesterday, we highlighted that GBP ‘could dip below 1.3850’ but we were of the view that ‘1.3810 is not expected to come under threat’. However, GBP briefly dropped to 1.3809 before snapping back up to end the day little changed at 1.3895 (-0.04%). The sharp bounce from the low appears to be running ahead of itself and GBP is unlikely to strengthen much further. GBP is more likely to consolidate and trade between 1.3840 and 1.3930.”

Next 1-3 weeks: “There is no change in our view from last Thursday (11 Mar, spot at 1.3930). As highlighted, GBP ‘has moved into a consolidation phase and is expected to trade between 1.3810 and 1.4020 for now’. Note that GBP dipped one pip below the bottom of the expected range (low of 1.3809) yesterday (16 Mar) before rebounding quickly.”

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 hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.