GBP/USD moves back closer to 100-pips trading range hurdle, around 1.2830

Haresh Menghani FXStreet

The GBP/USD pair prolonged its consolidative price-action and retreated from the top end of 6-day old trading range, albeit has managed to hold its neck above the 1.2800 handle.

Currently trading around 1.2825-30 band, today's mildly bearish tone lacks any fundamental drivers and could be solely attributed to a modest US Dollar recovery, despite of retreating US treasury bond yields. The downslide, however, has been limited as investors seems to have paused ahead of the US President Donald Trump's keenly awaited tax plan announcement, later during the day.

• GBP/USD: Downtrend now appears mature - Westpac

Looking at the broader picture, the pair has been oscillating within 100-pips broader trading range between 1.2750-1.2850. Against the backdrop of last week's strong up-surge to the highest level since early Oct., led by the UK PM Theresa May's surprise announcement to call for a snap election, the pair recent price action could be categorized as consolidative phase. Hence, it would be prudent to wait for a decisive break through the recent trading range before committing to the pair's next leg of directional move.

With an empty US economic docket, the pair remains at the mercy of USD price-dynamics and optimism surrounding Trump's promised package to overhaul the US tax code.

Technical outlook

"The key support is Friday's low of 1.2765, with the pair turning bearish only below it. The next support and probable bearish target comes around 1.2710. A strong resistance comes at 1.2845, which means that the pair needs to accelerate through 1.2850 to be able to advance further, targeting then the 1.2900/10 region" writes Valeria Bednarik, Chief Analyst at FXStreet.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD holds gains around 1.1800 amid renewed USD selling

EUR/USD regains positive traction and holds around 1.1800 in the European session, reversing the previous day's modest losses. The pair's uptick is sponsored by the emergence of fresh US Dollar selling, which remains induced by persistent trade-related uncertainties.

GBP/USD strengthens above 1.3500 on softer US Dollar

GBP/USD is posting moderate gains above 1.3500 in European trading on Wednesday. The pair appreciates as the US Dollar meets fresh supply following US President Donald Trump’s first State of the Union address and amid looming tariff uncertainty.

Gold eyes monthly top above $5,200 amid geopolitics, trade jitters

Gold buyers are back in the game, eyeing $5,200 and beyonf on Wednesday after seeing a correction from monthly highs on Tuesday. The US Dollar slips after Trump’s SOTU fails to impress and as AI-driven worries ease. Dovish Fed bets also weigh. Gold looks north so long as the key 61.8% Fibo resistance at $5,142 holds on the daily chart.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.