GBP/USD: There is a solid resistance level at 1.2805 – UOB Group

FXStreet Insights Team FXStreet

The Pound Sterling (GBP) is expected to trade in a sideways range between 1.2725 and 1.2775, but risk for GBP has shifted to the upside. Note that there is a solid resistance level at 1.2805, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.

Next resistance level exists at 1.2805

24-HOUR VIEW: “Yesterday, we held the view that ‘there is room for GBP to retest the 1.2780 level before a pullback can be expected.’ Our expectation did not materialise, as GBP traded in a quiet manner between 1.2740 and 1.2764. The price movements are likely part of a sideways trading phase. Today, we expect GBP to trade in a range of 1.2725 and 1.2775.”

1-3 WEEKS VIEW: “We highlighted yesterday (04 Jul, spot at 1.2745) that ‘the risk for GBP has shifted to the upside.’ We pointed out that ‘there is a solid resistance level at 1.2805, ahead of last month’s high of 1.2860.’ There is no change in our view. The upside risk is intact as long as GBP remains above 1.2685 (‘strong support’ level was at 1.2665 yesterday).”

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 climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.