GBP/USD drops to test daily lows as USD strengthens
|GBP/USD was unable to hold on top of 1.3500 and move back toward daily lows amid a rally of the US dollar across the board.
The greenback gained momentum during the American session ahead of tomorrow’s FOMC decision.
Cable reached 1.3536 following the release of US economic data and then retraced. During the last hour, it accelerated the decline and at the moment trades at 1.3475/80, slightly above 1.3465/70, where today and yesterday’s low are located.
The slide is taking place as the US Dollar Index moves to test daily highs above 91.75 boosted by US bond yields that continue to rise. The 10-year yield reached 2.243%, the highest in a month.
Levels to watch
To the downside, the immediate support is the 1.3460 zone (Sep 18 & 19 low), followed by 1.3405 (Sep 14 high) and 1.3330 (Sep 13 high). On the upside, resistance levels might lie at 1.3520 (downtrend line), 1.3550 (Sep 19 high) and 1.3570.
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.