GBP/USD pares losses and returns above 1.2600

Guillermo Alcala FXStreet

GBP/USD finds support at 1.2500 to return to levels past 1.2600.
The pound shrugs off previous weakness as the USD loses momentum.
GBP will drop to 1.2300 if Brexit transition is not extended – Reuters Poll.

The pound sterling is picking up during Thursday’s US session. GBP has taken advantage of a softer US dollar to extend its rebound from 1.2500 lows to session highs beyond 1.2600, approaching an important resistance area at 1.2650.

Pound rally stalled at 1.2600 amid growing Brexit fears

The GBP/USD has rallied about 3.5% from 1.2170 lows on late May, with the US dollar losing ground amid an improved market mood on hopes of a fast global economic recovery. The pair, however, retreated on Wednesday as risk appetite lost steam with the investors growing wary about the lack of progress on the Brexit talks.

The pair's reversal from two-month highs at 1.2615 has been contained at 1.2500, and the GBP pared losses on Thursday, with the dollar losing ground after the ECB’s decision to step up the COVID-19 emergency fund.

GBP/USD might fall to 1.2300 without Brexit transition extension – Reuters Poll

According to the latest Reuters poll of FX strategists, the pound will give away recent gains against the USD if the UK fails to extend the Brexit transition period, “The pound is expected to have weakened to $1.23 by end-June week.”

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD: Bears retain control below 1.1780-1.1770 confluence breakpoint

The EUR/USD pair remains on the back foot through the Asian session on Friday and currently trades just above mid-1.1700s, well within striking distance of a nearly one-month low set the previous day.

GBP/USD seems vulnerable near one-month low vs. USD as traders await US data

The GBP/USD pair prolongs its weekly downtrend for the fifth consecutive day on Friday and slides back closer to a nearly one-month low, touched the previous day. Spot prices trade below mid-1.3400s during the Asian session on Friday and seem vulnerable to slide further as traders now look to important US macro data for a fresh impetus.

Gold eyes next breakout on US GDP, PCE inflation data

Gold sticks to recent gains around the $5,000-mark early Friday, biding time before the high-impact US macro events. The focus is now on the US fourth-quarter Gross Domestic Product, core Personal Consumption Expenditures Price Index and the Supreme Court’s ruling on President Donald Trump’s tariffs.

Bitcoin, Ethereum and Ripple remain range-bound as breakdown risks rise

Bitcoin, Ethereum, and Ripple are trading sideways within consolidation ranges on Friday, signaling a lack of directional bias in the broader crypto market. BTC rebounded from key support, and ETH is nearing the lower consolidation boundary, while XRP is holding at its lower trendline boundary.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.