GBP/USD: Holds recent trading range above 1.27 for now – Scotiabank

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is softer, in line with its major currency peers, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP is trading softer on the day

“There were no UK data reports to shape trade this morning and, like the EUR, GBP trading largely reflects the broader tone in the USD ahead of today’s US CPI data. Sterling is a relative outperformer over the past 3 months, however, reflecting the slow-moving policy evolution at the BoE. That trend should remain in place, supporting GBP gains on the crosses.”

“GBP is trading towards the lower end of the past week’s trading range but found firm support in the low 1.27s through European dealing. Daily price action does look a little soft, however, and a low close for the pound today would signal more risk of losses in the days ahead following last week’s failure to challenge the 200-day MA. Support is 1.2700/10 and 1.2630. Resistance is 1.2775 and 1.2825.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD tests 1.1800 barrier above 50-day EMA

EUR/USD gains ground after three days of losses, trading around 1.1790 during the Asian hours on Thursday. The 14-day Relative Strength Index momentum indicator at 47 (neutral) reflects easing momentum. The RSI below 50 keeps momentum balanced and could limit follow-through.

GBP/USD struggles near four-week low vs. USD, below 1.3500 amid BoE rate cut bets

The GBP/USD pair is seen consolidating its weekly losses registered over the past three days and oscillating in a narrow range near a four-week trough, touched during the Asians session on Thursday. Spot prices currently trade just below the 1.3500 psychological mark and seem vulnerable to slide further.

Gold consolidates below $5,000 amid geopolitical risk, hawkish FOMC Minutes

Gold extends its sideways consolidative price move through the Asian session on Thursday and remains below the $5,000 psychological mark as traders seem hesitant amid mixed cues. The US Dollar preserves its strong gains to over a one-week high in the wake of somewhat hawkish Minutes of the US Federal Reserve’s January monetary policy meeting.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments. The technical outlook suggests further gains if INJ breaks above key resistance.

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.