GBP/USD moved into a consolidative phase – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group now see GBP/USD navigating within the 1.2100/1.2400 range in the next weeks.

Key Quotes

24-hour view: “While we expected GBP to strengthen yesterday, we held the view that ‘1.2270 is unlikely to come into the view’. The subsequent advance in GBP exceeded our expectation as it surged to a high of 1.2296. Despite the relatively strong rise, upward momentum has not improved by as much. That said, there is scope for the current GBP strength to test 1.2310 first before a more sustained pull-back can be expected. For today, a move beyond 1.2350 would come as a surprise. Support is at 1.2230 followed by 1.2200.”

Next 1-3 weeks: “GBP took out 1.2230 ‘key resistance’ and as highlighted yesterday (19 May, spot at 1.2205), a break of this level would indicate that the weak phase that started earlier last week (see annotations in chart below) has run its course. The current movement is viewed as the early stages of a consolidation phase. For the next couple of weeks, GBP is likely to trade sideways within a relatively broad range of 1.2100/1.2400.”

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 loses traction, breaks below 1.1900

EUR/USD comes under extra downside pressure, breaching below the 1.1900 support once again on Tuesday. The improved tone in the US Dollar keeps the pair on the back foot after two consecutive daily advances. In the meantime, prudence is expected to kick in ahead of the release of the key US Nonfarm Payrolls on Wednesday.

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold comes under marked selling pressure on Tuesday, giving back part of its recent two day advance and threatening to challenge the key $5,000 mark per troy ounce. The yellow metal’s correction follows a better tone in the risk complex, a lower Greenback and shrinking US Treasuty yields.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.