GBP/USD Price Analysis: GBP/USD profit taking in play as US dollar stalls

GBP/USD bears moved in on the weekly W-formation's target.
The US dollar is now stalling which could give some support to cable.

Ross J Burland FXStreet

As per the prior analysis, GBP/USD Price Analysis: Bears eye a trip to 1.3450 as per weekly chart, cable has indeed move din on the target area as follows:

GBP/USD prior analysis

The above was the W-formation's neckline targetted.

Below was the expected trajectory of the price action on the hourly chart, noting the prospect of a restest of the support (liquidity grab) and subsequent projected decline.

GBP/USD live charts

The price action and flight path followed suit into the weekly support target area.

At this juncture, much will now depend on geopolitics, global equities and the US dollar that will benefit from safe-haven flows or any uber hawkish surprise at the Federal Reserve meeting.

As it stands, the US dollar, as measured by the DXY index, is stalling for now:

The 61.8% ratio meets with prior highs as a firm layer of potential support for the sessions ahead.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD: Breakdown below trading range support near 1.1770 comes into play

The EUR/USD pair opens with a bearish gap at the start of a new week as the US-Iran war-led global flight to safety boosts the US Dollar. Spot prices, however, lack follow-through selling and manage to hold above mid-1.1700s during the Asian session.

GBP/USD declines below 1.3450 on Middle East tensions, UK political uncertainty

The GBP/USD pair attracts some sellers to around 1.3420 during the early Asian session on Monday. The US Dollar edges higher against the Cable amid escalating tensions in the Middle East after recent US-Israeli strikes on Iran over the weekend.

Gold jumps over 2% toward $5,400 after US, Israel attack Iran

Gold is on fire at the start of the week, a widely expected move, as investors seek harbor in the traditional store of value, following the continued US and Israel attacks on Iran. The bright metal opened with a bullish gap of about $17 and rallied toward the $5,400 level as Asian traders hit their desks and reacted negatively to the weekend news of the Middle East conflict, rushing for cover in Gold.

Iran escalation: Quick thoughts on markets

Markets are likely to open the week with risk-off, with declines led by airlines, cyclicals and trade-exposed names, while energy, defense and “strategic” sectors may be relatively steadier.

Crisis in the Middle East: The market reaction

A primer on how markets will open on Monday, and why geopolitical risk may not be easily absorbed by financial markets this time around. Geopolitics and events between Iran, the US and the wider Middle East will dominate financial markets on Monday. The situation has continued to escalate as we move through Sunday.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.