GBP/USD: Likely to test the support at 1.3445 – UOB Group

FXStreet Insights Team FXStreet

Pound Sterling (GBP) could test the significant support at 1.3445 against US Dollar (USD); oversold conditions suggest a clear break below this level is unlikely. In the longer run, outlook for GBP remains negative; the next technical target is at 1.3445, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Outlook for GBP remains negative

24-HOUR VIEW: "GBP dropped to a low of 1.3535 last Thursday and then quickly rebounded. On Friday, we indicated that GBP 'could retest the 1.3535 level.' However, we stated that 'the current momentum seems to suggest the major support at 1.3510 is unlikely to come under threat.' Although our directional call turned out to be correct, the subsequent decline exceeded our expectations, as GBP plunged through 1.3510 and reached a low of 1.3481. Not surprisingly, the sharp drop has led to an increase in downward momentum. Today, GBP could test the significant support level at 1.3445. Given that conditions are deeply oversold, a clear break below this level is unlikely. To sustain the oversold momentum, GBP must not break above 1.3540 (with minor resistance is at 1.3520)."

1-3 WEEKS VIEW: "We have viewed GBP negatively since early this month. Tracking the subsequent price movements, in our most recent narrative from last Wednesday (09 Jul, spot at 1.3590), we stated that 'the likelihood of GBP dropping to 1.3510 is increasing.' On Friday, GBP broke below 1.3510 and reached a low of 1.3484. The outlook for GBP remains negative, and the next technical target is at 1.3445. We will maintain our view provided that the ‘strong resistance’ at 1.3575 (level was at 1.3645 last Friday) is not breached. Looking ahead, if GBP were to break and hold below 1.3445, it may trigger a deeper decline towards June’s low, near 1.3375."

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.

GBP/USD declines to near 1.3350 as US launches strikes on Iran

The GBP/USD pair loses traction to near 1.3355 during the Asian trading hours on Wednesday. The US Dollar edges higher against the British Pound amid renewed geopolitical tensions after the US renewed strikes on Iran. The Federal Reserve’s June meeting minutes will be published later on Wednesday.

EUR/USD gains as the Dollar moves sideways amid market caution

EUR/USD maintains its position after registering modest losses in the previous day, trading around 1.1410 during the Asian hours. Traders’ attention is focused on Wednesday's release of the US Federal Reserve Meeting Minutes, the first under newly appointed Chairman Kevin Warsh, for crucial clues regarding the future path of US interest rates.

Gold regains $4,100 despite Iran risks, ahead of Fed Minutes

Gold is fading in the tepid rebound above $4,100 early Wednesday, having reversed a part of the previous sell-off. Traders eagerly await the Minutes of the US Federal Reserve June monetary policy meeting, due later in the day, for fresh trading impetus.

Pi Network crashes to a record low amid broader market stress

Pi Network (PI) price edges toward $0.1000 extending losses for the fifth straight day. Retail sentiment remains bearish as Open Interest and the funding rate decline. The technical outlook for PI is bearish as selling pressure mounts, despite oversold conditions.

WTI holds above $72.00, near two-week high amid fresh US-Iran tensions

West Texas Intermediate (WTI) struggles to capitalize on the previous day's strong move up and enters a bullish consolidation phase near a two-week high, touched during the Asian session this Wednesday. The black liquid currently trades just above the $72.00 mark, with bulls awaiting a sustained strength beyond a technically significant 200-day SMA amid renewed US-Iran hostilities.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.