GBP/USD reverses sharply to test 1.2960, ignores upbeat UK data

Dhwani Mehta FXStreet

The GBP/USD pair failed to sustain the bounce above 1.30 handle, despite a Big beat seen in the UK retail sales data, knocking-off the rate sharply towards the mid-point of 1.29 handle.

GBP/USD eyes on EUR/GBP for fresh impetus

The GBP/USD pair retraced sharply from 1.3017 levels reached immediately after the UK retail sales data for June staged a solid rebound across the time horizon. UK retail sales rebound sharply in June, a Big beat on expectations

The spot witnessed good two-way trading so far this Thursday, with the bears now fighting back control amid renewed fears over the Brexit deal, after the UK Trade Minister Liam Fox said earlier that Britain can survive with no Brexit deal.

Moreover, Brexit jitters continue to haunt the GBP markets as the UK’s Brexit Minister Davis meets the EU Chief Brexit negotiator Barnier in Brussels later on Thursday, in order to wrap up the first substantive rounds of Brexit talks.

The reversal can be also attributed partly to notable US dollar demand across the board, as Treasury yields attempt a tepid bounce amid risk-on rally witnessed in the global equities. Next of note for the major remains the ECB monetary policy decision, which could have a cross-driven rub-off effect on the pound.

GBP/USD levels to consider

Valeria Bednarik, Chief Analyst at FXStreet noted, “The current price zone is a strong static support, which means the pair could consolidate around it before taking next step. A downward acceleration should result in a test of 1.2920 first, while further slides could see the pair reaching 1.2870. Above 1.3010, the risk turns back towards the upside, with scope then to retest 1.3060.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.