GBP/USD outlook: Top formation risks deeper pullback
Cable extends lower in early Monday, following 0.75% drop on Friday, pressured by profit-taking after repeated failures at 1.3700 zone and comments from US Treasury nominee Yellen that US does not seek weaker dollar.
Fresh weakness broke below 20DMA (1.3560), softening near-term structure, with daily close below here to signal top and increase risk of testing pivotal supports at 1.3466/51 (Fibo 23.6% of 1.2675/1.3711 / Dec 11 trough).
Daily moving averages (5/10/20) turned to negative setup, but larger bulls remain in play and only break of 1.3466/51 pivots would sideline bulls and signal deeper pullback towards 1.3377 (rising 55DMA) and 1.3315 pivot (Fibo 38.2%) in extension. Read more...
GBP/USD slides to multi-day lows, further below mid-1.3500s
The GBP/USD pair lost some additional ground during the early European session and dropped to fresh multi-day lows, around the 1.3535 region in the last hour.
The pair extended previous session's retracement slide from the 1.3700 mark, or multi-year tops and witnessed some follow-through selling on the first day of a new trading week. The prevalent cautious mood benefitted the US dollar's relative safe-haven status and was seen as a key factor dragging the GBP/USD pair lower for the second consecutive session. Read more...
GBP/USD Forecast: Break below ascending trend-line to confirm a bearish double-top
The GBP/USD pair continued with its struggle to find acceptance, or build on the recent bullish momentum beyond the 1.3700 mark and witnessed some long-unwinding trade on Friday. The pair did get a minor lift following the release of monthly UK GDP print, which showed that the economy contracted by 2.6% MoM in November as against -5.7% anticipated. The reading, to a larger extent, was offset by the disappointing releases of Industrial Production and Goods Trade Balance data.
This, along with a broad-based US dollar strength, exerted some heavy pressure on the major. Investors remain concerns about the continuous surge in the number of new COVID-19 cases worldwide. Friday's disappointing US macro data added to market worries about the potential economic fallout from the coronavirus pandemic and weighed on investors' sentiment. Read more...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold price sits at all-time highs above $2,230, US PCE eyed
Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.