Pound Sterling Price News and Forecast: GBP/USD bearish potential limited, but bull cautious

FXStreet Team FXStreet

GBP/USD Price Analysis: Inverse Head-And-Shoulders underway on 4-hour chart

GBP/USD takes the bids near 1.2490, up 0.05% on a day, during Monday’s Asian session. In doing so, the Cable extends Friday’s bounce off 200-bar SMA to sharpen the inverse Head-And-Shoulder formation on the four-hour chart. However, the neckline of the bullish pattern joins 50% Fibonacci retracement level of June 10-29 fall to add strength to the upside barrier.

Increasing the odds of an upside break is the strong RSI condition and the pair’s sustained trading beyond 200-bar SMA. As a result, the bulls are waiting for a clear break above 1.2535 to escalate the recent recovery moves. In doing so, the June 16 top near 1.2690 could become immediate resistance to watch ahead of the previous month’s high near 1.2815.

GBP/USD Forecast: Mounting Brexit tensions could hit the Pound

The GBP/USD pair has remained unchanged just below the 1.2500 threshold on Friday but closed the week with substantial gains. Hopes mixed with fears by the end of the week, as Britons welcomed the reopening of social activities on Saturday. The news overshadowed concerns related to Brexit talks, which broke up early on Thursday, amid serious disagreements between the two parts. Nevertheless, both parts committed to another round of talks this week in London, and market players expect the EU and the UK to reach an agreement on trade by October.

EUR/USD weakens toward 1.1600 as firm US data revives the US Dollar

The EUR/USD edged lower on Thursday, down some 0.21% as market sentiment remains risk averse due to the ongoing conflict in the Middle East. This and solid US economic data pushed the pair lower towards the 1.1600 figure ahead of Friday’s session.

GBP/USD drifts lower heading into NFP range

GBP/USD edged lower by 0.2% on Thursday, settling close to 1.3350 in a strained trading session that kept the pair pinned near three-month lows. Price briefly recovered earlier in the day on reports that Iran had indirectly signaled openness to talks with the CIA, but the bounce faded as Israeli officials reportedly advised Washington to disregard the overture.

Gold slumps below $5,100 as US Dollar gains

Gold price tumbles to near $5,085 during the early Asian session on Friday. The precious metal loses ground amid a stronger US Dollar. The US employment report for February will take center stage later on Friday.

NYSE parent Intercontinental Exchange partners with OKX, invests at a $25B valuation

OKX announced an investment from Intercontinental Exchange, raising its valuation to $25 billion, alongside a partnership to expand regulated crypto futures and tokenized equity offerings globally.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.

Ripple tests recovery strength amid steady ETF inflows, growing retail interest

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.