TRENDING:

XAU/USD

EUR/USD

GBP/USD slides to fresh session lows amid modest USD recovery

Haresh Menghani FXStreet

• Stalls post-UK GDP upsurge near 1.3280 level
• Sharp USD recovery prompting some profit taking

After an initial uptick to 1.3279 level, 7-day tops, the GBP/USD pair met with some fresh supply and has now drifted into negative territory.

The pair failed to build on previous session's UK GDP-led strong up-move and failed ahead of the 1.3300 handle. In absence of any fresh development, a modest US Dollar rebound seems to have prompted some profit taking, following yesterday's sharp upsurge of over 160-pips.

Meanwhile, optimism over Trump's drive to overhaul the US tax code and speculations that the next Fed Chair could steer the policy in a more hawkish direction continues to limit any deeper USD retracement and seems to be the only factor capping any further up-move for the major.

Investors' focus would remain glued to the ECB meeting and Mario Draghi's speech, which could influence the pair's movement through the EUR/GBP cross.

Later during the NA session, second-tier US economic data - initial jobless claims, goods trade balance data, prelim wholesale inventories and pending home sales, would now be looked upon for some fresh impetus.

Technical levels to watch

At the time of writing, the pair was placed at session lows, around 1.3230 area, with FXStreet's technical confluence indicator identifying immediate support near the 1.3199-93 region and then 1.3170 level. On the upside, 1.3240 level is seen as immediate resistance, above which the up-move could get extended towards the 1.3300 handle en-route 1.3320 resistance.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.

GBP/USD slides to fresh session lows amid modest USD recovery

Broker Reviews

Editor's Picks