GBP/USD still risks a drop to 1.2040 – UOB

Pablo Piovano FXStreet

GBP/USD maintains the downside pressure well in place and could revisit the 1.2040 zone in the near term, note UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: We expected GBP to trade in a range between 1.2100 and 1.2170 last Friday. Our view of range trading was not wrong, even though it traded in a narrower range than anticipated (1.2106/1.2163). GBP then closed largely unchanged at 1.2123 (-0.04%). The consolidative price action suggests further range trading today, albeit likely in a lower range of 1.2085/1.2155.

Next 1-3 weeks: Last Thursday (26 Oct, spot at 1.2105), we highlighted that downward momentum is beginning to improve, and we were of the view that GBP is likely to test the early October near 1.2040. While GBP has not been able to make much headway on the downside and downward momentum has waned somewhat, there is still room for GBP to test 1.2040. Overall, only a breach of 1.2180 (‘strong resistance’ level previously at 1.2200) would indicate that the current downward pressure has faded.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD stays well bid beyond 1.1700

EUR/USD keeps the bid tone in place toward the end of the NA session on Tuesday, trading well north of the 1.1700 barrier on the back of the intense decline in the US Dollar, all amid the resurgence of the “Sell America” trade. Moving forward, investors’ attention will be on the release of US PCE data on Wednesday.

GBP/USD eases from tops, back to 1.3460

GBP/USD is extending its winning streak into a second session, now surrendering some gains and receding toward the 1.3460 area on Tuesday. Cable’s rebound remains propped up by the persistent selling pressure on the Greenback, while the British Pound appears, for now, largely unfazed by the mixed signals from the UK labour market.

Gold conquers the $4,700 mark on Trump’s threats

Gold builds on Monday's gains and hits a new record high around $4,760 per troy ounce on Tuesday. Escalating geopolitical tensions and growing fears of deepening trade conflicts, alongside the broad-based selling pressure surrounding the US Dollar continue to fuel the yellow metal’s rally.

Bitmine scoops additional ETH, receives approval to increase authorized shares

Ethereum (ETH) treasury firm Bitmine Immersion Technologies (BMNR) increased its stash to 4.2 million ETH after acquiring 35,628 ETH last week. The firm's holdings represent 3.48% of the total ETH circulation, just 1.52% shy of its goal to acquire 5% of the supply.

Greenland tariffs: What happened, and how to position for the new Europe risk premium

Over the weekend, President Trump threatened a new round of tariffs on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the UK, with reporting flagging 10% from February 1 and a possible step-up later.

Crypto Today: Bitcoin, Ethereum and XRP extend correction as rising geopolitical tensions fade risky sentiment

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) prices are extending their losses on Tuesday as risk-on sentiment fades amid rising geopolitical tensions over Greenland.