GBP/USD is set to grow towards the next major resistance at 1.2900 – UOB Group

FXStreet Insights Team FXStreet

Price action continues to suggest upside risk, so there’s room for the Pound Sterling (GBP) to grow towards the next major resistance at 1.2900, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

The next level to watch is at 1.2900

24-HOUR VIEW: “Our expectation for GBP to trade in a sideways range of 1.2770/1.2820 yesterday was incorrect. Instead of trading sideways, GBP rose sharply to a high of 1.2849. Upward momentum is building, and today GBP broke above 1.2860, so the next major resistance is at 1.2900. To maintain the momentum buildup, GBP must not break below 1.2805, with minor support at 1.2825.”

1-3 WEEKS VIEW: “On Monday (08 Jul, spot at 1.2805), we indicated that ‘the risk for GBP remains on the upside, and the level to watch is 1.2860.’ We added, ‘if GBP breaks below 1.2750, it would mean that the upside risk from last Thursday has faded.’ Yesterday, GBP rose and closed at a 4-month high of 1.2849 (+0.48%). The price action continues to suggest upside risk. The next level to monitor is 1.2900. On the downside, the ‘strong support’ level has moved higher to 1.2775 from 1.2750.”

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 looks sidelined below 1.1600

EUR/USD remains on the back foot in the latter part of the NA session on Thursday, now attempting a consolidative theme in the sub-1.1600 region. A more cautious market mood, driven by the escalating conflict in the Middle East, together with broad-based strength in the US Dollar, is favouring the continuation of the leg lower in spot.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

Crypto Today: Bitcoin, Ethereum, XRP hold weekly gains despite US-Iran war

The cryptocurrency market is gaining strength on Thursday, building on Wednesday's upswing, which saw Bitcoin reach a weekly high above $74,000. Ethereum and Ripple are moderating their recent gains amid uncertainty stemming from the escalating war in the Middle East.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.