GBP/USD: View is still negative – UOB Group

FXStreet Insights Team FXStreet

The current price movements are likely part of a 1.3360/1.3460 consolidation phase. In the longer run, GBP view is still negative; the next technical target at 1.3320 may not come into view so soon, as it could consolidate first, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are likely part of a 1.3360/1.3460

24-HOUR VIEW: "While we indicated yesterday that 'there is room for GBP to weaken further', we pointed out that 'any decline is likely part of a lower range of 1.3360/1.3445.' The subsequent price movements did not turn out as we expected. After dipping to a low of 1.3366, GBP popped to a high of 1.3485 before dropping back down to close at 1.3418 (+0.25%). Despite the sharp fluctuations, the current price movements are likely part of a consolidation phase. Expected range for today: 1.3360/1.3460."

1-3 WEEKS VIEW: "We highlighted the following yesterday (16 Jul, spot at 1.3395): 'We maintain our negative GBP view, even though the next technical target at 1.3320 may not come into view so soon – short-term oversold conditions could lead to consolidation first. On the upside, should GBP break above 1.3500 (‘strong resistance’), it would mean that the weakness in GBP has stabilised.' Our view still stands."

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.

AUD/USD bulls regain control above 0.6950 amid USD retreat

AUD/USD regains traction and extends the previous day's bounce from the weekly low, aiming for 0.7000 in Asia on Friday. The overnight pullback in US bond yields keeps the US Dollar below an 18-month high, which in turn offers some support to the pair. Meanwhile, hawkish RBA expectations also keep the major underpinned.

USD/JPY holds gains near 158.00 after Japan's weak Household Spending data

USD/JPY clings to gains around 158.00 after data showed on Friday that Japan's Household Spending fell for the ninth straight month, undermining the Japanese Yen. Meanwhile, the US Dollar remains depressed as the overnight fall in US bond yields counters a hawkish Fed and geopolitical uncertainties, could cap any downside in the pair.

Gold retakes $4,200 amid pre-US CPI repositioning

Gold holds firm, revisiting $4,200 on Friday, extending recovery from two-month lows. US Dollar eases in tandem with Oil prices and Treasury yields, awaiting US sentiment data. The tide seems to be turning in favor of Gold, but the daily RSI is still bearish.

Starknet rally tests key breakout amid proposed Layer-1 transition

Starknet (STRK) is up 16% so far on Friday, advancing its steady recovery of nearly 200% since mid-August. The rally aligns with the rising demand for financial anonymity in the cryptocurrency market and the CEO of StarkWare, Eli Ben-Sasson’s proposed transition of Starknet to Layer-1 to achieve quantum security by 2027.

The inflation illusion: How government formulas shape the data

Every month, the government releases a barrage of economic statistics. Employment, inflation, consumer spending, economic growth, and countless other measurements are presented as objective facts that policymakers, investors, and the public can use to understand the economy. But what happens when the methodology used to produce those numbers changes?

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.