GBP/USD moved into a consolidation range – UOB

Pablo Piovano FXStreet

In opinion of FX Strategists at UOB Group, cable is now seen navigating within the 1.3500-1.3645 range in the next weeks.

Key Quotes

24-hour view: “We expected GBP to ‘consolidate and trade between 1.3565 and 1.3630’ yesterday. However, GBP plummeted to 1.3639 before staging a rapid rebound to end the day slightly lower at 1.3587 (-0.12%). The choppy price actions have resulted in a mixed outlook and GBP could trade within a relatively broad range of 1.3560/1.3625 for today.”

Next 1-3 weeks: “Last Thursday (17 Feb, spot at 1.3585), we highlighted that GBP has to close above 1.3645 before a sustained advance is likely. As GBP struggled to move above 1.3645, we highlighted on Monday (21 Feb, spot at 1.3595) that the chance for GBP to move clearly above 1.3645 has diminished. Yesterday (22 Feb), GBP dropped below our ‘strong support’ level of 1.3545 (low of 1.3539). The breach of the ‘strong support’ indicates that GBP is not ready to head higher in a sustained manner. In other words, GBP is likely to trade sideways for now, expected to be between 1.3500 and 1.3645.”

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 off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.