GBP/USD now seen sidelined – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group believe Cable could now attempt a consolidative theme.

Key Quotes

24-hour view: “While we held the view last Friday that “a short-term bottom is in place”, we expected GBP to “trade sideways”. However, GBP staged a strong advance and hit a high of 1.3734. Despite the relatively strong gain, there is no marked improvement in momentum and while GBP could edge higher from here, a sustained rise is not expected. In other words, GBP is expected to trade sideways to slightly higher, likely holding within a 1.2700/1.2755 range”.

Next 1-3 weeks: “After GBP bounced from 1.2605, we indicated on Friday (24 May) that the beckoning call of 1.2600 has “softened”. The subsequent strong recovery in GBP during last Friday’s London session touched 1.2734. While the high is still below our 1.2760 ‘key resistance’, the price action suggests that GBP has made a short-term bottom at 1.2605. In other words, GBP is expected to trade above 1.2605 for the next 1 to 2 weeks. That said, it is too soon to expect a sustained rebound. From here, GBP is deemed to have moved into a ‘sideway-trading phase’ and is expected to trade between 1.2640 and 1.2850. Looking ahead, only a move above 1.2950 would indicate that 1.2605 is a more significant bottom than currently expected”.

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 holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

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.