GBP/USD stick to recovery gains, focus on House of Lords debate on Article 50

Haresh Menghani FXStreet

The GBP/USD pair extended bounce off a short-term ascending trend-line support, and has now reversed majority of Friday's disappointing UK retail sales-led slide to sub-1.2400 level.

The pair, however, trimmed some of its gains to session peak level near 1.2480 region and is currently trading around 1.2455-60 region. Despite of the pull-back, the pair has managed to maintain its strong bid tone and in absence of any market moving economic releases, Monday's recovery could be attributed to some short-covering amid largely subdued US Dollar price-action and repositioning ahead of House of Lords debate on Article 50, later during the day.

Live – House of Lords debate on Article 50

Meanwhile, holiday thin market liquidity conditions, in wake of a holiday in the US markets, could have contributed towards aggravating the move and infusing some volatility around the major.

Meanwhile, focus would remain on this week's key event risks - the second estimate of UK GDP growth numbers and the FOMC meeting minutes, which would help investors to determine the next leg of directional move for the major.

Technical levels to watch

Momentum above session peak resistance near 1.2480 level could get extended towards 1.2500 psychological mark above which the pair seems all set to head towards 1.2565-70 resistance area ahead of 1.2600 round figure mark.

On the downside, retracement back below 1.2440 level, leading to a subsequent break below 1.2420 area, could drag the pair back towards the ascending trend-line support near 1.2400 handle, which if broken decisively might accelerate the slide towards 1.2350-45 area before the pair eventually breaks below 1.2300 handle and head towards testing its next support near 1.2260-55 region.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.2401

21% Bullish
50% Bearish
29% Sideways

Bias Bearish

1 Month

Avg Forecast 1.2315

28% Bullish
56% Bearish
17% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.2128

9% Bullish
65% Bearish
26% Sideways

Bias Bearish

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 struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.