GBP/USD: Three signs pointing to a sterling rally

FXStreet Team FXStreet

GBP/USD has been trading around 1.36 as tensions grow toward US Nonfarm Payrolls. Things may turn in favor of the currency pair as optimism about vaccine approval and deployment may boost the pound, Yohay Elam, an Analyst at FXStreet, reports.

See – Nonfarm Payrolls Preview: Forecast from five major banks for December jobs report

Key quotes

“Britain is ramping up its efforts to beat the virus. Regulators are set to approve Moderna's vaccine, bringing the total number of immunization schemes deployed in the UK top three. Another shot in the arm comes from concerted efforts by the government to speed up the distribution of jabs across the county.”

“Bond-buying by the Federal Reserve can bring yields down and make the dollar less attractive and that could happen if economic data deteriorates. The Nonfarm Payrolls report for December is set to show a notable slowdown in hiring – and perhaps a loss of jobs. Any disappointment could prompt action from the Fed, which already expressed its readiness to act.”

“Momentum on the 4-hour chart has turned positive for GBP/USD – which has also been able to recapture the 50 Simple Moving Average it had lost on Thursday. Some resistance awaits at 1.3620, the mid-December high, followed by 1.3676, the 2021 high.

Support awaits at 1.3630, the daily low, followed by 1.3480 and 1.3445.”

Author

FXStreet Team

FXStreet

EUR/USD: Bears retain control below 1.1780-1.1770 confluence breakpoint

The EUR/USD pair remains on the back foot through the Asian session on Friday and currently trades just above mid-1.1700s, well within striking distance of a nearly one-month low set the previous day.

GBP/USD seems vulnerable near one-month low vs. USD as traders await US data

The GBP/USD pair prolongs its weekly downtrend for the fifth consecutive day on Friday and slides back closer to a nearly one-month low, touched the previous day. Spot prices trade below mid-1.3400s during the Asian session on Friday and seem vulnerable to slide further as traders now look to important US macro data for a fresh impetus.

Gold eyes next breakout on US GDP, PCE inflation data

Gold sticks to recent gains around the $5,000-mark early Friday, biding time before the high-impact US macro events. The focus is now on the US fourth-quarter Gross Domestic Product, core Personal Consumption Expenditures Price Index and the Supreme Court’s ruling on President Donald Trump’s tariffs.

Bitcoin, Ethereum and Ripple remain range-bound as breakdown risks rise

Bitcoin, Ethereum, and Ripple are trading sideways within consolidation ranges on Friday, signaling a lack of directional bias in the broader crypto market. BTC rebounded from key support, and ETH is nearing the lower consolidation boundary, while XRP is holding at its lower trendline boundary.

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.