GBP/USD: Next on the downside comes 1.1580 – UOB

Pablo Piovano FXStreet

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, GBP/USD still risks a deeper pullback in the short term.

Key Quotes

24-hour view: “Our expectations for GBP to ‘trade sideways’ yesterday was incorrect as it plummeted to a low of 1.1622 during NY session. While the rapid drop appears to be overdone, the weakness in GBP has not stabilized. In other words, GBP could weaken further but the chance for a break of 1.1610 is not high for now. The next support at 1.1580 is not expected to come under threat. Resistance is at 1.1688 but only a breach of 1.1715 would indicate that the weakness in GBP has stabilized.”

Next 1-3 weeks: “On Monday (29 Aug, spot at 1.1690), we noted that downward momentum has improved quickly and we held the view GBP could weaken towards 1.1630. Yesterday (30 Aug), GBP dropped to a low of 1.1622. Downward momentum has improved further, albeit not by much and the risk for GBP is still on the downside. The next level to watch is at 1.1580. On the upside, a break of 1.1755 (‘strong resistance’ level was at 1.1800 yesterday) would indicate that GBP is unlikely to weaken further.”

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.

GBP/USD remains in two-day highs around 1.3260

GBP/USD adds to Friday’s bounce, gathering fresh traction and flirting with the 1.3270 zone on Monday, or two-day tops. Cable’s decent advance comes despite the move higher in the Greenback and investors’ assessing of UK PM K. Starmer's resignation.

EUR/USD remains offered; focus is on 1.1400

EUR/USD rapidly gives back Friday’s rebound and trades with marked losses near 1.1420, or three-month lows, in the latter part of Monday’s NA session. The pair’s intensifies its retracement following the continuation of the robust upside momentum in the US Dollar. Next on tap will be preliminary PMIs the Germany and the Euroland.

Gold bounces off lows, looks to surpass $4,200

Gold regains composure and leaves behind three-consecutive daily declines on Monday, looking to regain the area above the $4,200 mark per troy ounce. Reports of progress in the latest round of US-Iran talks are helping the precious metal maintain its footing at the start of the week, although the stronger Greenback seems to limit the upside potential for now.

XRP recovery underpinned by persistent ETF inflows

Ripple (XRP) gains momentum on Monday, trading above $1.15 as the crypto market widely recovers. This recovery comes amid easing geopolitical tensions in the Middle East, following reports that the United States (US) and Iran made progress in the first round of talks aimed at achieving a lasting peace agreement.

Is Shiba Inu dead or just in a crisis? The data behind SHIB's 95% crash

SHIB, the dog-themed meme coin that became one of the biggest success stories in crypto and turned early buyers into crypto millionaires, is facing tough times. Its price has fallen more than 32% so far this year, and it is down 95% from its all-time high in 2021. Is SHIB simply another fading meme coin, or is the market overlooking a possible recovery story?

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.