GBP/USD: Sustained move below 1.1350 to warn of potential fall to the 1985 low at 1.0520/1.0483 – Credit Suisse

FXStreet Insights Team FXStreet

GBP/USD is declining sharply again. Economists at Credit Suisse assess the next major support levels should the pair break below their long-held core bearish objective at 1.1500/1.1409.

Resistance at 1.1902 ideally caps

“GBP/USD has seen a clear break of the 1.1760 July low as expected and we stay bearish for a move to our core objective of the key low of 2020 and long-term trend support stretching back to 1985 at 1.1500/1409. We would then look for a fresh temporary floor here.”

“GBP/USD below the 1.1409 low of 2020 and certainly potential trend support at 1.1350 would be seen to mark a further significant deterioration with support seen next at 1.1285, ahead of 1.1020/00 and potentially back to the 1985 lows at 1.0520/1.0483.”

“Resistance at 1.1902 now ideally caps although a close above the 55-day average at 1.2040 is needed to open the door to a consolidation phase.”

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.

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD challenges 1.1650; US Dollar remains inconclusive

EUR/USD now manages to regain some composure, trimming earlier losses and reclaiming the mid-1.1600s on Thursday. The pair’s pullback comes on the back of marginal gains in the US Dollar, as market participants now shift their attention to Friday’s NFP revision and the speech by Chair Warsh at the Jackson Hole Symposium.

Gold recovers $4,600, buyers unwilling to give up

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Crypto Today: Bitcoin, Ethereum, XRP bulls regain strength amid steady capital inflows

Cryptocurrency prices are broadly edging higher on Thursday, led by Bitcoin’s uptick near $80,000. Altcoins mirror Bitcoin’s short-term bullish outlook, with Ethereum trading above $2,500 and Ripple hovering above its key $1.40 support.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.