GBPUSD extends its slide from this week’s peaks seen around 1.2325, struggling to hold above 1.2200
The US dollar is back in positive territory on Thursday after yesterday’s failed attempt to challenge the 105.00 mark. The USD index regained the 104.50 area but the upside potential looks limited for the time being amid mixed risk environment. EURUSD came across the descending 20-DMA yesterday to finish higher for the third session in a row. On Thursday, the shared currency fell back from local highs to slip below the 1.0500 figure during the early European hours, pressured by weak economic data coupled with a stronger US dollar. The immediate support now arrives at 1.0470, followed by 1.0400. As of writing, the pair was changing hands around 1.0500, losing 0.59% on the day. Failure to hold above this level on a daily closing basis would add to some short-term bearishness surrounding the common currency. On the upside, the euro still needs to make a decisive break above the descending 20-DMA, currently at 1.0600.
GBPUSD extends its slide from this week’s peaks seen around 1.2325. On Wednesday, the pair briefly dipped to local lows around 1.2160 before bouncing back above 1.2200. Today, the prices struggle to hold beyond this mark as the safe-haven dollar demand has reemerged. On the shorter-term timeframes, the pound keeps flirting with simple moving averages, struggling to stage a more sustained bounce from the mentioned local lows. Should the pressure intensify in the near term, the pair may challenge the 1.2100 mark. However, at this stage, the prices are unlikely to threaten long-term lows seen last week around 1.1930. In a wider picture, the pound would stay on the defensive while below the 1.3000 psychological level last seen more than two months ago. The immediate upside target now arrives at 1.2330, followed by the descending 20-DMA, today at 1.2388.
USDJPY refreshed 24-year highs around 136.70 before retreating on Wednesday. The selling pressure persists today, with the pair trading below 136.00 during the European hours. The buck briefly slipped to 135.12 earlier in the day before trimming intraday losses. Despite the bearish correction, the pair could see another push north after a pause, with the 137.50 zone coming into the market focus on the upside. The yen continues to suffer from the Bank of Japan’s tight policy that comes in contrast with the Fed’s aggressive tightening plan. The pair was last seen changing hands around 135.50 figure, shedding 0.54% on the day. As the buck refrains from a more pronounced downside correction for the time being despite the extremely overbought conditions, another rally after a pause could be expected. Should the prices overcome the mentioned peaks, the 137.00 mark will come into the market focus. If the ascent continues in the coming days or weeks, USDJPY may target the 140.00 handle eventually.
Recovery attempts failed to bring bitcoin above $22,000 earlier in the week, pushing the coin back under pressure eventually. The BTCUSD pair shed 3.62% on Wednesday, finishing just below the $20,000 psychological level that remains in the market focus for the time being. Today, the largest cryptocurrency by market capitalization has settled above the key level but still refrains from a more decisive bounce, suggesting downside risks continue to dominate for the time being. Bitcoin is likely to keep retesting long-term lows below $20,000 as the so-called crypto winter will continue, so it may be too early to buy the cion on dips as much lower levels may loom over the horizon in the coming weeks and months. Last week, BTCUSD found a “bottom” around $17,600 before bouncing back to $20,000. However, the selling pressure is likely to reemerge and probably intensify in the near term as risk-averse environment persists amid growing economic risks.
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