GBP/USD looks for direction near 1.2160

Pablo Piovano FXStreet

The Sterling is trading slightly on the defensive at the end of the week, taking GBP/USD to the lower bound of the range near 1.2150.

GBP/USD retreats from 1.2300

The pair shed over a cent since yesterday’s tops around the 1.2300 handle, as sellers step in along with some pick up in the demand for the US dollar. Cable is thus closing its second consecutive week with losses, keeping the trade in the area of 3-month lows.

GBP’s outlook remains fragile and occasional bullish attempts seem to lack of any sustainability for the time being, all against heightened risks of a ‘hard Brexit’ scenario and despite some auspicious results in the UK economy as of late.

Absent releases in the UK calendar, the attention will shift to US Retail Sales and the advanced gauge of Consumer Sentiment measured by the Reuters/Michigan Index for the month of January.

GBP/USD levels to consider

As of writing the pair is losing 0.03% at 1.2155 and a breach of 1.2104 (low Jan.10) would open the door to 1.2081 (low Oct.28) and then 1.1450 (GBP ‘flash crash’ Oct.7). On the flip side, the next hurdle aligns at 1.2275 (20-day sma) followed by 1.2318 (high Jan.12) and finally 1.2414 (55-day sma).

1. R3 1.2443
2. R2 1.2381
3. R1 1.2277
PP 1.2215
1. S1 1.2111
2. S2 1.2049
3. S3 1.1945

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 trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.