GBP/USD firmer, testing offers near 1.3000

Dhwani Mehta FXStreet

The Asian recovery seen in GBP/USD gained extra traction in the European session, sending the rate sharply higher in a bid to reclaim 1.30 handle.

GBP/USD trades just below 5-DMA at 1.2999

The spot extends its reversal from a drop-led by the overnight comments from the UK PM Theresa May and now looks to regain 1.3000 barrier amid a broadly subdued greenback as well as treasury yields.

The latest leg higher in GBP/USD can be also seen as a result of positive London stocks and a renewed rally in oil prices, which underpin the risk-currency GBP. WTI refreshed fresh five-week tops at $ 51.88 levels, while Brent also hovers near multi-month highs of $ 54.62.

Focus now remains on the US existing home sales data due on the cards in the NA session, which is expected to provide impetus to the buck, eventually impacting the major. However, the reaction may remain limited ahead of the Fed minutes that will be published in the American afternoon.

GBP/USD Levels to consider

Jim Langlands at FX Charts noted: “Back above 1.3000 would find strong resistance in the 1.3035/45 area, capped by last Thursday’s, 8-month high of 1.3047, but above which could run towards strong offers at 1.3075, and then further out, towards the long descending term trend resistance at around 1.3120. A break of this looks important and could lead to a quick run towards 1.3270 although that remains to be seen. A neutral stance is required today although I mildly prefer to trade from the short side, looking to sell rallies above 1.3000, with a SL placed above 1.3050.”

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.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.