GBP/USD remains below 1.3335 – UOB Group

FXStreet Insights Team FXStreet

Provided Pound Sterling (GBP) remains below 1.3335 against US Dollar (USD), it could edge lower to 1.3265. In the longer run, the current price movements are part of a 1.3240/1.3450 range-trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Price movements are part of a 1.3240/1.3450 range-trading phase

24-HOUR VIEW: "Two days ago, GBP soared to 1.3402 and then pulled back sharply. Yesterday, when GBP was at 1.3350, we indicated that 'the pullback from the high amid overbought conditions suggests GBP is likely to trade in a range today, expected to be between 1.3300 and 1.3400.' Instead of trading in a 1.3300/1.3400 range, GBP dropped to a low of 1.3281, closing on a soft note at 1.3290 (-0.60%). There has been a slight increase in downward momentum, but it is not sufficient to suggest a sustained decline. Today, provided that GBP remains below 1.3335 (minor resistance is at 1.3320), it could edge lower to 1.3265. A dip below this level is not ruled out, but based on the current momentum, any further decline is unlikely to reach the major support at 1.3240."

1-3 WEEKS VIEW: "We indicated yesterday (07 May, spot at 1.3350) that 'The current price movements as part of a 1.3240/1.3450 range-trading phase.' There is no change in our view. That said, the slight increase in short-term downward momentum indicates the increasing risk of GBP breaking below 1.3240."

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.