GBP/USD: Likely to consolidate between 1.3520 and 1.3585 – UOB Group

FXStreet Insights Team FXStreet

Pound Sterling (GBP) is likely to consolidate between 1.3520 and 1.3585. In the longer run, outlook for GBP remains positive, and it may rise to 1.3620; the chances of it reaching 1.3660 this time around are more limited, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Outlook for GBP remains positive

24-HOUR VIEW: "Last Friday, we noted that GBP 'has likely entered a 1.3500/1.3585 consolidation phase.' Although our view of consolidation was not wrong, GBP traded between 1.3529 and 1.3573, a much narrower range than expected. The price movements still appear to be part of a consolidation phase, most likely between 1.3520 and 1.3585."

1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (14 Aug, spot at 1.3580), we indicated that 'the outlook for GBP remains positive, and it may rise to 1.3620.' We also indicated that 'the chances of it reaching 1.3660 this time around are more limited.' While GBP has not been able to make further headway on the upside, we will maintain our view as long as 1.3485 (no change in ‘strong support’ level) is not breached. A breach of the ‘strong support’ level would indicate that the positive outlook from more than a week ago has been invalidated."

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 holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.