GBP/USD: Further consolidation in the pipeline near term – UOB

Pablo Piovano FXStreet

UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia note GBP/USD could extend the consolidative phase in the next few weeks.

Key Quotes

24-hour view: We highlighted yesterday that “the sharp rebound in GBP has room to extend, but any advance is unlikely to reach 1.2200.” We added, “Support is at 1.2110, followed by 1.2080.” Our view was not wrong. GBP dipped to a low of 1.2108 in London trade and then rose quickly to a high of 1.2196. Upward momentum has increased, albeit not by all that much. Today, GBP could rise above 1.2230, but it is unlikely to be able to maintain a foothold above this level. The major resistance at 1.2270 is unlikely to come under threat. Support is at 1.2160, followed by 1.2130.

Next 1-3 weeks: Our update from yesterday (05 Oct, spot at 1.2140) is still valid. As highlighted, the recent downward momentum buildup has faded. The current price movement is likely part of a range-trading phase, and GBP is likely to trade in a range between 1.2030 and 1.2270 for now.

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold remains range-bound below $4,200

Gold has given up some ground after an initial bullish attempt to reach weekly highs, returning to below the $4,200 mark per troy ounce on Friday. The US Dollar’s strong upside momentum, combined with rising US Treasury yields across the curve, seems to keep further gains in the yellow metal under scrutiny.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?

The Euro is not the sick man of Europe. France's bond market is

EUR/USD remains under pressure, near the 17-month low of 1.1161 reached on Monday. The pair has lost more than 7% since its yearly peak, as concerns over France's public finances increasingly weigh on the single currency. But behind the weakness of the Euro (EUR), the problem does not necessarily lie with the European economy as a whole.