GBP/USD is under selling pressure and could fall towards 1.2273.GBP/USD bounced modestly from an intraday low of 1.2343, now changing hands at around 1.2380. The pair edged sharply lower ahead of the US opening, despite the Eurozone and the United Kingdom celebrating Easter Monday, which kept local markets closed.
Wall Street, on the other hand, normally operated with US indexes trading mixed around their opening levels. The Dow Jones Industrial Average is up 0.14%, while the S&P 500 and the Nasdaq Composite remain in the red. Treasury yields, on the other hand, ticked north, with the 10-year note currently offering 3.41% and the 2-year note 4.0%.
The US Dollar advanced amid a dismal market mood, as market players are once again focused on a potential recession in the United States, following aggressive monetary tightening from the Federal Reserve (Fed) and the banking crisis that started last month.
The British Pound may find firmer directional strength on Thursday when the UK will release updates on the Gross Domestic Product, Industrial and Manufacturing Production, and the Trade Balance.
The GBP/USD pair is posting lower lows on a daily basis, in line with a bearish extension in the upcoming sessions, moreover, if the aforementioned daily low is infringed. The pair may then slide towards 1.2273, April 3 daily low, en route to 1.2189, March 24 low. Immediate resistance could be found in the 1.2440 region, with gains beyond it exposing the multi-week high set in early April at 1.2524.
EUR/USD falls below 1.0850 as USD gathers strength
EUR/USD came under heavy bearish pressure following a consolidation phase in the European session and declined below 1.0850. The broad-based US Dollar strength amid souring market mood seems to be weighing on the pair ahead of this week’s key data releases.
GBP/USD extends slide toward 1.2350 amid risk aversion
GBP/USD has reversed its direction and declined to the 1.2350 area after having climbed toward 1.2450 earlier in the day. The negative shift seen in risk sentiment, as reflected by the negative opening in Wall Street, provides a boost to the USD and forces the pair to stay on the back foot.
Gold: XAU/USD extends decline after losing $2,000
Spot gold gapped lower at the weekly opening and quickly extended its slump after filling the gap. XAU/USD currently trades around $1,990, not far from an intraday low of $1,986.84 a troy ounce.
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