GBP/USD looks to extend the corrective slide towards 1.2900
|- Bears taking back charge, as USD makes a comeback amid better risk tones.
- 200-DMA near 1.2970 – a tough nut to crack, UK CBI industrial orders in focus.
The GBP/USD pair is seen breaking lower from its overnight consolidative range heading into the early European trading, as broad-based US dollar recovery gathers steam amid better risk tones.
The greenback is seen making a comeback against its main peers, tracking the recovery in the Treasury yields, as the risk sentiment improves on the hopes of Chinese stimulus and US-China trade resolution.
The spot continues to face stiff resistance at the 200-DMA located near 1.2970 levels. However, increased odds of a softer Brexit and the extension of Article 50 will continue to keep the sentiment around the Cable underpinned. Meanwhile, the latest upbeat UK jobs report, with stronger wage growth, brings the BOE rate hike back in play.
Looking ahead, a fresh risk-on wave in Europe could strengthen the USD recovery, which could fuel another leg down in the spot, extending the correction from three-day tops of 1.2976. Data-wise, markets will await the second-linier UK CBI industrial orders data while the speech from the BOE Deputy Governor Broadbent will be closely eyed.
GBP/USD Technical Levels
GBP/USD
Overview:
Today Last Price: 1.2951
Today Daily change: -0.0001 pips
Today Daily change %: -0.01%
Today Daily Open: 1.2952
Trends:
Daily SMA20: 1.2785
Daily SMA50: 1.2751
Daily SMA100: 1.2892
Daily SMA200: 1.3079
Levels:
Previous Daily High: 1.2976
Previous Daily Low: 1.2855
Previous Weekly High: 1.3002
Previous Weekly Low: 1.2668
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Daily Fibonacci 38.2%: 1.293
Daily Fibonacci 61.8%: 1.2901
Daily Pivot Point S1: 1.288
Daily Pivot Point S2: 1.2807
Daily Pivot Point S3: 1.2759
Daily Pivot Point R1: 1.3001
Daily Pivot Point R2: 1.3049
Daily Pivot Point R3: 1.3122
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