In the view of analysts at Société Générale, a rally beyond 1.2450 is crucial to affirm uptrend on GBP/USD.Support aligns at 1.1900
“Recent peak at 1.2450 is expected to be an intermittent resistance. Failure to cross above this hurdle can result in a phase of pullback.”“Recent pivot low of 1.1900 is near term support. Break can lead to a deeper pullback towards October high of 1.1640.”
“A move beyond 1.2450 would be essential for affirming a larger uptrend. In case this crossover materializes, the up move could persist towards 1.2750, the 61.8% retracement from February 2021 and 1.3250/1.3300.”
EUR/USD rises toward 1.0650 as US Dollar weakens
EUR/USD has regained its traction and climbed to the 1.0650 area after having declined toward 1.0600 earlier in the day. The renewed US Dollar weakness following the weaker-than-expected data releases from the US seems to be helping the pair push higher.
GBP/USD stays in red, holds above 1.2000
GBP/USD has recovered modestly after having met support near 1.2000 in the early American session on Tuesday. The US Dollar stays on the back foot but the risk-averse market environment doesn’t allow the pair to gain traction.
Gold defies gravity and trades above $1,820.00
Gold advanced at the beginning of the week, gapping higher amid the USD’s broad weakness. Financial markets started the week in optimistic mode amid news from China moving away from its zero-covid policy.