GBP/USD: Set to retest the 1.2630 level – UOB Group

FXStreet Insights Team FXStreet

Scope for the Pound Sterling (GBP) to retest the 1.2630 level; the major support at 1.2615 is unlikely to come under threat. In the longer run, GBP is expected to continue to weaken to 1.2615, possibly 1.2565, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP is expected to continue to weaken to 1.2615

24-HOUR VIEW: “When GBP was at 1.2710 yesterday, we highlighted the following: ‘Although the weakness has not stabilised, downward momentum has slowed a tad. This, combined with oversold conditions, suggests 1.2665 may still be out of reach for now.’ While our view of a weaker GBP was correct, the lurch lower that sent it to a low of 1.2630 was unexpected. Downward momentum is showing tentative signs of slowing, but there is scope for GBP to retest the 1.2630 level before stabilisation is likely. The major support at 1.2615 is unlikely to come under threat. Resistance is at 1.2690; a breach of 1.2715 would mean that GBP is not weakening further.”

1-3 WEEKS VIEW: “In our latest narrative from two days ago (13 Nov, spot at 1.2735), we indicated that ‘Downward momentum has surged, and the next technical target is at 1.2665.’ Yesterday, GBP fell and exceeded the target, dropping to a low of 1.2630. We continue to expect GBP to weaken, eying a move to 1.2615, possibly 1.2565. We will maintain our view provided that 1.2770 (‘strong resistance’ level was at 1.2845 yesterday) 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 weakens to three-month lows near $4,300

Gold faces increasing selling interest and approaches 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.