GBP/USD might trade between 1.3045 and 1.3120 – UOB Group

FXStreet Insights Team FXStreet

Outlook is mixed; Pound Sterling (GBP) could trade between 1.3045 and 1.3120. In the longer run, there is room for GBP to test the significant support level at 1.3000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Room for GBP to test the significant support level at 1.3000

24-HOUR VIEW: "GBP fell sharply to a low of 1.3043 on Wednesday. Yesterday, Thursday, we stated that GBP 'could decline further', but we pointed out that 'deeply oversold conditions suggest it is unlikely to break below the major support at 1.3000'. We were incorrect, as after dipping to a low of 1.3040, GBP rebounded strongly to a high of 1.3124. GBP dropped back down from the high to close modestly higher at 1.3069 (+0.09%). The outlook for today is mixed after the choppy price movements. Today, GBP could trade between 1.3045 and 1.3120."

1-3 WEEKS VIEW: "Yesterday (20 Nov, spot at 1.3060), we highlighted that 'there is room for GBP to test the significant support level at 1.3000'. We also highlighted that 'to keep the momentum going, GBP must hold below 1.3150 (‘strong resistance’ level)'. Our view remains unchanged for now."

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 stays below 1.1850 after dismal German sentiment data

EUR/USD stays in negative territory below 1.1850 in the second half of the day on Tuesday. Renewed US Dollar strength, combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD falls toward 1.3550, pressured by weak UK jobs report

GBP/USD remains under bearish pressure and extends its decline below 1.3600 on Tuesday. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month and making it difficult for Pound Sterling to stay resilient against its peers.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.