GBP/USD analysis: pulls back from fresh YTD highs
|GBP/USD Current price: 1.3479
The GBP/USD pair peaked at 1.3653, its highest since the Brexit referendum following Fed's initial release, in which it left rates unchanged, but the dollar gained traction on news the US Central Bank will begin unwinding its balance sheet starting next October. The Pound ended the day just 30 pips lower against its American rival, boosted at the beginning of the day by upbeat UK Retail Sales figures for August. Sales increased by 1.0% compared with July, and by 2.4% when compared to a year earlier, more than doubling market's expectations. The core readings, excluding fuel prices, were also sharply higher, while all July readings were revised modestly higher. The news sent the pair briefly above the 1.3600 level but pulled back ahead of Fed, holding anyway above 1.3500. Anyway, the pair is heading into the Asian opening around 1.3480, having set a low of 1.3451 on dollar's strength. From a technical point of view, the 4 hours chart shows that the risk has turned towards the downside, as the price is currently below a modestly bearish 20 SMA, whilst the RSI indicator hovers within neutral territory, and the Momentum entered bearish territory, with not enough directional strength at the time being. An extension below 1.3440 is now required to confirm a bearish continuation for this Thursday, with scope then to test the 1.3350/70 region.
Support levels: 1.3440 1.3410 1.3370
Resistance levels: 1.3530 1.3560 1.3595
View Live Chart for the GBP/USD
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.