GBP/USD spikes to 1-1/2 week tops, 1.32 mark back on sight

Haresh Menghani FXStreet

• Gains some positive momentum on Brexit headlines.
• Follow through up-move needed for additional gains.
• NIESR's update on the UK's GDP outlook eyed.

The GBP/USD pair caught some strong bid over the past hour and jumped to 1-1/2 week tops, closer to the 1.3200 handle.

The pair initially struggled to gain traction despite stronger UK manufacturing/industrial production data and held within its three-day old trading range. However, the latest comments from the EU's chief Brexit negotiator, Michel Barnier, and his UK counterpart, David Davis, seems to have eased concerns over a possible hard Brexit scenario and provided some positive momentum to the British Pound.

Moreover, possibilities of some short-term trading stops being triggered on a decisive move beyond the 1.3170 region might have also collaborated to the pair's sharp spike over the past hour or so. Hence, it would be prudent to wait for a follow-through momentum to see if the up-move is backed by any genuine buying interest or is only a stop run.

Meanwhile, a softer tone around the US Dollar, amid the disappointment from the long-awaited tax legislation, remained supportive of the pair's uptick on the last trading day of the week.

Traders now look forward to the NIESR's update on the UK's GDP outlook for some impetus. This followed by the Prelim UoM Consumer Sentiment Index from the US would determine the pair's momentum through the NY trading session.

Technical levels to watch

Momentum beyond the 1.3200 handle could get extended towards the 1.3225-30 heavy supply zone ahead of 50-day SMA hurdle near mid-1.3200s. On the downside, retracement back below 1.3150 level could drag the pair towards 1.3110 support area en-route 1.3085 strong support.

Author

Haresh Menghani

FXStreet

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

EUR/USD remains offered below 1.1800, looks at US data

EUR/USD is still trading on the defensive in the latter part of Thursday’s session, while the US Dollar maintains its bid bias as investors now gear up for Friday’s key release of the PCE data, advanced Q4 GDP prints and flash PMIs.

GBP/USD bounces off monthly lows near 1.3430

GBP/USD is sliding in tandem with its risk-sensitive peers, drifting back towards the 1.3430 area, its lowest levels in the month. The move reflects a firmer Greenback, supported by another round of solid US data and a somewhat divided FOMC Minutes.

Gold drifts higher to near $5,000 on heightened US-Iran tensions

Gold price holds positive ground near $5,000 during the early Asian session on Friday. The precious metal edges higher as escalating tensions between the United States and Iran boost safe-haven demand. Traders brace for the preliminary reading of US Gross Domestic Product for the fourth quarter, the Personal Consumption Expenditures and the S&P Global Purchasing Managers Index data, which are due later on Friday.

XRP edges lower as SG-FORGE integrates EUR stablecoin on XRP Ledger

Ripple’s (XRP) outlook remains weak, as headwinds spark declines toward the $1.40 psychological support at the time of writing on Thursday.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Injective token surges over 13% following the approval of the mainnet upgrade proposal

Injective price rallies over 13% on Thursday after the network confirmed the approval of its IIP-619 proposal. The green light for the mainnet upgrade has boosted traders’ sentiment, as the upgrade aims to scale Injective’s real-time Ethereum Virtual Machine architecture and enhance its capabilities to support next-generation payments.