GBP/USD: May test 1.3000 after breaking above the current range – UOB Group

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is likely to consolidate in a range of 1.2940/1.2995. GBP must break above 1.3000 before further advance can be expected, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

Rangebound between 1.2940 and 1.2995

24-HOUR VIEW: “We indicated yesterday that GBP ‘could pullback, but any decline is unlikely to threaten the support at 1.2915.’ We noted that ‘resistance levels are at 1.2985 and 1.3000.’ Our view did not materialise as GBP traded between 1.2960 and 1.2995, closing slightly lower at 1.2967 (-0.17%). The current price action is likely part of a consolidation phase. Today, we expect GBP to trade in a 1.2940/1.2995 range.”

1-3 WEEKS VIEW: “In our most recent narrative from last Friday (12 Jul, spot at 1.2925), we indicated that ‘the risk for GBP remains on the upside, but overbought conditions suggest 1.3000 might not come into view so soon.’ Yesterday, GBP edged to a high of 1.2995 and then pulled back. The 1.3000 level is turning out to be a significant resistance, and GBP must break above this level before further advance can be expected. Looking ahead, the next level to watch above 1.3000 is at 1.3045. The risk of GBP breaking clearly above 1.3000 will remain intact as long as 1.2885 (‘strong support’ level was at 1.2870 yesterday) is not breached.”

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.

AUD/USD eyes 0.7150 barrier nine-day EMA

AUD/USD inches higher after registering modest losses in the previous day, trading around 0.7130 during the Asian hours. The technical analysis of the daily chart indicates that the pair is moving sideways within the rectangle pattern, suggesting a consolidation as neither the bulls nor the bears have enough momentum to take control of the market.

USD/JPY trades below 160.00 intervention threshold; bullish bias intact

The USD/JPY pair attracts some sellers during the Asian session amid fears that authorities will step in again to prop up the Japanese Yen. Furthermore, the Israel-Lebanon truce prompts some profit-taking around the US Dollar and exerts downward pressure on the currency pair.

Gold puts its 200-day SMA to the test near $4,420

Gold keeps the bullish stance in place in the latter part of Thursday’s session, although a convincing break above the key $4,500 mark per troy ounce still remains elusive. The precious metal’s advance comes amid the resurgence of some selling interest around the Greenback, improving risk sentiment, and declining US Treasury yields across the board.

Bitcoin’s massive storm is back: Why the sell-off is far from over

Bitcoin price action over the last few weeks has felt less like a normal, healthy correction and more like a slow grinding crash that continues to wreak havoc on holdings and trading accounts. And everything suggests that the dramatic crash isn’t over.

Nonfarm payrolls: Testing the limits of Fed policy patience

The upcoming nonfarm payrolls report for May will provide the final update on the US labor market before Kevin Warsh attends his first policy meeting as the new Fed Chair later this month.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.