GBP/USD: Overbought conditions suggest any advance is unlikely to reach 1.3600 – UOB Group

FXStreet Insights Team FXStreet

Strong momentum indicates further Pound Sterling (GBP) strength; overbought conditions suggest any advance is unlikely to reach 1.3600. In the longer run, upward momentum remains strong; the next objective is 1.3635, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum remains strong

24-HOUR VIEW: "Following last Thursday’s price action, we indicated on Friday that 'The price action provides no fresh clues, and we continue to expect consolidation today, most likely within a range of 1.3375/1.3450.' We did not expect GBP to surge to 1.3550. While strong upward momentum indicates further GBP strength, overbought conditions suggest that any advance is unlikely to reach 1.3600. Note that there is another resistance level at 1.3570. On the downside, any intraday pullback is likely to hold above 1.3475, with minor support at 1.3505."

1-3 WEEKS VIEW: "We revised our GBP outlook to positive in the middle of last week (see annotations in the chart below). In our latest narrative from last Thursday (22 May, spot at 1.3420), we indicated that 'momentum indicators continue to point to GBP upside, and the next technical target is at 1.3500.' GBP broke above 1.3500 last Friday, reaching a high of 1.3550. Upward momentum remains strong, and the next objective is 1.3635. We will continue to expect GBP strength as long as 1.3420 (‘strong support’ level previously at 1.3340) is not breached."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.