GBP/USD now risks a drop to 1.2405 – UOB

Pablo Piovano FXStreet

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, further downside in cable could revisit the 1.2400 region in the next weeks.

Key Quotes

24-hour view: “The sharp drop in GBP to a low of 1.2459 came as a surprise (we were expecting GBP to consolidate). While the rapid decline is deeply oversold, the weakness in GBP could extend below 1.2450 before stabilization is likely. The major support at 1.2405 is unlikely to come into the picture. Resistance is at 1.2510 followed by 1.2540.”

Next 1-3 weeks: “We highlighted yesterday (01 Jun, spot at 1.2610) that upward momentum has more or less dissipated and we expected GBP to consolidate and trade between 1.2530 and 1.2670. We did not expect the sharp sell-off that sent GBP to a low of 1.2459. The rapid improvement in downward momentum suggests GBP is likely to weaken towards 1.2405. At this stage, the chance for a sustained decline below this level is not high. On the upside, a breach of the ‘strong resistance’ level, currently at 1.2570, would indicate that GBP is not ready to head lower.”

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 flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

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 precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

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.