News

GBP/USD sticks to dismal UK data-led weakness, around 1.2900 handle

   •  Disappointing UK macro data further dents the already weaker sentiment around GBP.
   •  A modest USD pull-back from multi-week tops helped limit deeper losses, at least for now.
   •  Investors still seemed reluctant to place aggressive bets amid persistent Brexit uncertainties.

The GBP/USD pair held on to its disappointing UK macro data-led weakness and is currently placed at the lower end of its daily trading range, around the 1.2900 handle.

The British Pound remained depressed at the start of a new trading week and weakened further, dropping to an intraday low level of 1.2894 against the buck, in a knee-jerk reaction to today's dismal UK macro releases.

The downtick, however, turned out to be rather short-lived, with a modest US Dollar pull-back from multi-week tops prompting some short-covering move during the mid-European trading session.

The greenback failed to capitalize on the early up-move and was now being weighed down by a slight improvement in risk-sentiment, further reinforced by a goodish pickup in the US Treasury bond yields.

Meanwhile, the pair lacked any firm directional bias and remained well within the post-BoE trading range as investors still seemed reluctant to place any aggressive bets amid persistent Brexit uncertainties.

Hence, it would be prudent to wait for a strong follow-through selling or a sustained move beyond the key 1.30 psychological mark before positioning for the pair's next leg of a directional move.

Technical levels to watch

GBP/USD

Overview:
    Today Last Price: 1.2917
    Today Daily change %: -0.14%
    Today Daily Open: 1.2935
Trends:
    Daily SMA20: 1.3002
    Daily SMA50: 1.2812
    Daily SMA100: 1.2891
    Daily SMA200: 1.3024
Levels:
    Previous Daily High: 1.2976
    Previous Daily Low: 1.2921
    Previous Weekly High: 1.3103
    Previous Weekly Low: 1.2854
    Previous Monthly High: 1.3214
    Previous Monthly Low: 1.2438
    Daily Fibonacci 38.2%: 1.2942
    Daily Fibonacci 61.8%: 1.2955
    Daily Pivot Point S1: 1.2912
    Daily Pivot Point S2: 1.2889
    Daily Pivot Point S3: 1.2856
    Daily Pivot Point R1: 1.2967
    Daily Pivot Point R2: 1.3
    Daily Pivot Point R3: 1.3023

 

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