GBP/USD now looks to 1.2820 – UOB

Pablo Piovano FXStreet

Cable could slip back to the 1.2820 region if it clears 1.2850, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that the ‘the rapid pullback could extend lower but last week’s low near 1.2850 is not likely to come into the picture’. In line with expectation, GBP dropped to 1.2860 before recovering. While downward momentum appears to have waned somewhat, it is too early to expect a sustained rebound. For today, GBP is likely to consolidate at these lower levels. Expected range for today, 1.2850/1.2940.”

Next 1-3 weeks: “GBP dropped to 1.2860 yesterday, not far above the bottom of our expected 1.2850/1.3030 sideway trading range. Despite the decline, there is no marked improvement in downward momentum. While a dip below 1.2850 is not ruled out, only a NY close below 1.2820 would suggest GBP is ready to embark on a sustained down-move. The prospect for such a scenario is low at the moment but would continue to increase over the next few days unless GBP can move and stay above 1.2940.”

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 challenges 1.1800, two-week lows

EUR/USD remains on the defensive, extending its leg lower to the vicinity of the 1.1800 region, or two-week lows, on Tuesday. The move lower comes as the US Dollar gathers further traction ahead of key US data releases, inclusing the FOMC Minutes, on Wednesday.

GBP/USD looks weaker near 1.3500

GBP/USD adds to Monday’s pessimism and puts the 1.3500 support to the test on Tuesday. Cable’s marked pullback comes in response to extra gains in the Greenback while disappointing UK jobs data also collaborate with the offered bias around the British Pound.

Gold recovers modestly, stays deep in red below $4,950

Gold (XAU/USD) stages a rebound but remains deep in negative territory below $4,950 after touching its weakest level in over a week near $4,850 earlier in the day. Renewed US Dollar strength makes it difficult for XAU/USD to gather recovery momentum despite the risk-averse market atmosphere.

Crypto Today: Bitcoin, Ethereum, XRP upside looks limited amid deteriorating retail demand

The cryptocurrency market extends weakness with major coins including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) trading in sideways price action at the time of writing on Tuesday.

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.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.