GBP/USD: Further rangebound seen within 1.3735-1.3900 – UOB

Pablo Piovano FXStreet

Cable is still forecast to navigate within the 1.3735-1.3900 range in the next weeks, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we expected GBP to ‘consolidate and trade between 1.3830 and 1.3900’. GBP subsequently rose to within a couple of pips of our expected range (high of 1.3898) before falling sharply to 1.3805. The choppy price actions have resulted in a mixed outlook. For today, GBP could trade between 1.3800 and 1.3885.”

Next 1-3 weeks: “There is no change to our view from two days ago (14 Jul, spot at 1.3805). As highlighted, GBP is likely to trade between 1.3735 and 1.3900 for a period of time. Looking ahead, a breach of 1.3900 is not ruled out but GBP has to close above 1.3930 before a sustained advance can be expected. On the downside, 1.3735 is a solid support and only a break of this level would indicate that GBP is ready to head lower towards 1.3670.”

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 stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.