GBP/USD: Might drop to 1.3385 before recoverin – UOB Group

FXStreet Insights Team FXStreet

Pound Sterling (GBP) could drop to 1.3385 before recovering; the major support at 1.3325 is not expected to come into view. In the longer run, there has been a tentative buildup in downward momentum; GBP could edge lower, but it is unclear if it can reach 1.3325, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Major support at 1.3325 is not expected to come into view

24-HOUR VIEW: "Our view for the 'rebound in GBP to extend' was incorrect, as it dropped sharply to a low of 1.3394, then recovered to close at 1.3422 (- 0.47%). Downward momentum has increased, but not much. Today, GBP could drop to 1.3385 before another recovery is likely. We do not expect the major support at 1.3325 to come into view. Resistance is at 1.3445, followed by 1.3465."

1-3 WEEKS VIEW: "We have expected GBP to trade in a range since late last month. Yesterday (07 Oct, spot at 1.3480), we stated that 'we continue to expect range-trading, but a narrower range of 1.3400/1.3525 is likely sufficient to contain the price movements for now.' We did not expect GBP to drop to a low of 1.3394. The price action has resulted in a tentative buildup in downward momentum. From here, we expect GBP to edge lower, but currently, it is unclear whether there is sufficient momentum for it to reach last month’s low, near 1.3325. On the upside, if GBP breaks above 1.3485 (‘strong resistance’ level), it would indicate that the downward bias has faded."

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 falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.