Weekly outlook covering GBPUSD and S&P 500, with Gold analysis and key support and resistance levels shaping market expectations.
GBPUSD remains heightened
The pound looks set to hold onto a multi-week high as traders shrug off the latest White House announcements. The UK currency has defied expectations after last week’s jump of over 200 pips. However, as the risk mood changes daily amid peace talks breaking down over a complete ceasefire in the Middle East, the dollar could be on the front foot for the remainder of this week. Any signs of exhaustion will lead to a test at 1.3350 and then 1.3200.
XAUUSD the correction begins
Gold analysis shows that the metal fell through the 4700 barrier, which opened the door to further lows. The American President remains in the news for market fluctuations, as his comments regarding blocking the Strait of Hormuz led to volatility across the markets. With little to no major economic news scheduled this week, the Middle Eastern conflict is expected to remain in focus. The price is attempting a rebound but will need to clear 4800 first, with 4580 acting as the new support level.
SPX 500 jumps higher
The S&P looks to bounce back after the recent downturn from the majority of last month. With all the talk on the Fed’s next move, those who expect a rate cut in the first half of the year will be disappointed. This could mean a turnaround in fortunes for the under-pressure index, and yet another possible high as prices look for a firm support at 6600, at the base of the recent gap. Any chance of a continuation higher needs a break at 6900 before a fresh peak can be tested.
