GBP/USD: Strong surge in momentum – UOB Group

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) appears to have entered a consolidation and is likely to trade between 1.2705 and 1.2770. In the longer run, there has been a strong surge in momentum; GBP may rise to 1.2850, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

GBP may rise to 1.2850

24-HOUR VIEW: “Last Friday, we expected GBP to ‘continue to rise, potentially breaking above 1.2805.’ However, we were of the view that ‘the major resistance at 1.2850 is likely out of reach for now.’ Our view was not wrong, as GBP broke above 1.2805, reaching a high of 1.2811. The advance was short-lived, as it fell swiftly from the high to close at 1.2741 (-0.15%). GBP appears to have entered a consolidation and is likely to trade between 1.2705 and 1.2770.”

1-3 WEEKS VIEW: “We revised our GBP outlook to positive last Friday (06 Dec, spot at 1.2760), indicating that ‘there has been a strong surge in momentum,’ and it ‘may rise to 1.2850.’ GBP subsequently rose to a 3-week high of 1.2811 before pulling back quickly. While the pullback has decreased the upward momentum somewhat, we continue to hold the view that GBP may rise to 1.2850. That said, should GBP break below 1.2685 (no change in ‘strong support’ from last Friday), it would indicate that the current upward momentum has faded.”

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.

EUR/USD weakens to four-week lows near 1.1750

EUR/USD’s selling pressure is gathering pace now, approaching the area of multi-week troughs in the mid-1.1700s on Thursday. The pair’s intense decline comes on the back of another day of solid gains in the US Dollar, particulalry exacerbated following firm prints from the weekly US labour market.

GBP/USD drops further, hovers around 1.3460

In line with the rest of its risk-linked peers, GBP/USD faces increasing selling pressure and recedes toward the 1.3460 region, or four-week lows, on Thursday. Cable’s persistent pullback comes in response to the continuation of the recovery in the Greenback amid a solid US data and a divided FOMC when it comes to the Fed’s rate path.

Gold clings to daily gains near $5,000

Gold struggles for direction and clings to its daily gains around the key $5,000 mark per troy ounce on Thursday. The precious metal sticks to the bid bias amid reignited geopolitical tensions in the Middle East and despite marked gains in the US Dollar and rising US Treasury yields across the curve.

Ripple slips toward $1.40 despite SG-FORGE tapping protocol for EUR CoinVertible

XRP extends its decline, nearing $1.40 support, as risk appetite fades in the broader market. SG-FORGE’s EUR CoinVertible launches on the XRP Ledger, leveraging the blockchain’s scalability, speed, security, and decentralization.

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.