GBP/USD: Further gains in the pipeline above 1.2220 – UOB

Pablo Piovano FXStreet

In the opinion of Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, sustainable gains in GBP/USD look likely once the pair clears the 1.2220 level.

Key Quotes

24-hour view: “We highlighted last Friday that ‘Mild upward pressure could lead to GBP edging higher but a sustained advance above 1.2150 is unlikely’. The anticipated advance exceeded our expectations as GBP soared to 1.2201 before closing on a firm note at 1.2181 (+0.58%). While GBP could advance further, a sustained rise above 1.2220 appears unlikely. Support is at 1.2155, followed by 1.2125.”

Next 1-3 weeks: “Our latest narrative was from last Thursday (16 Mar, spot at 1.2075) where GBP is likely to trade in a broad consolidation range, expected to be between 1.1950 and 1.2190. GBP edged slightly above 1.2190 on Friday (high of 1.2201) and upward momentum is beginning to build. However, GBP has to break and stay above 1.2220 before a sustained rise is likely (the next resistance is at 1.2270). The risk of GBP breaking clearly above 1.2220 will remain intact as long as it stays above 1.2095 in the next few days.”

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.

GBP/USD keeps the bid bias near 1.3550

GBP/USD leaves behind part of the recent three-day retracement and hovers around the 1.3550 region on Monday. The Greenback’s fresh downward trend helps Cable and the rest of the risk complex recoup part of the recent ground lost while attention remains on the potential Fed rate path.

EUR/USD retakes 1.1600; looks at the 200-day SMA

EUR/USD manages to gather fresh steam and advances past the 1.1600 hurdle as Monday’s NA session draws to a close. Indeed, the pair patially reverses Friday’s sharp retracement amid the renewed downside momentum in the US Dollar. Moving forward, the flash Inflation Rate in the euro zone and US JOLTs and the ISM Manufacturing should keep investors entertained on turnaround Tuesday.

Gold: Defending $4,400 is critical for buyers

Gold fades Monday’s rebound from eight-day lows, reverting toward $4,400 early Tuesday. US Dollar bounces sharply amid US-Iran tensions-led risk aversion and hawkish Fed bets. Gold attacks 21-day SMA near $4,400 after defending it on Monday; RSI still bullish.

Bitcoin shows resilience at $78,000 – Arbitrum, Curve DAO rally

The broader cryptocurrency market sustains its risk-on sentiment, with Bitcoin (BTC) showing resilience near $78,000 on Tuesday. Arbitrum (ARB) records double-digit gains over the last 24 hours as the Robinhood app, built on Arbitrum Orbit, hits a record high in revenue collection, while Curve DAO (CRV) follows suit. Bitcoin trades at $78,415 at press time on Tuesday, holding a clear bullish bias.

Fed Chair Warsh runs open-mouth operations at Jackson Hole but can he deliver?

Federal Reserve Chairman Kevin Warsh moved markets on Friday with his Jackson Hole speech, even though the central bank has yet to do anything to move inflation. Clearly, Warsh wants to convey a message. He’s tough on inflation, and the Fed will “deliver price stability.”

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.