GBP/USD Current price: 1.3757

  • UK employment-related data showed an unexpected increase in unemployed people.
  • Prevalent risk aversion boosted demand for the greenback, despite lower yields.
  • GBP/USD trades at fresh one-month lows with increased bearish potential.

The GBP/USD pair fell to 1.3751, its lowest since early February, as the greenback got fueled by risk aversion while the pound was smashed by poor UK  data. The country reported that in February, the number of unemployed people increased by 86,600. The ILO Unemployment rate for the three months to January decreased to 5%, better than the expected 5.2%. Average Hourly Earnings in the same period increased by less than anticipated, with wages excluding bonus at 4.2%.

The UK’s macroeconomic calendar will remain busy on Wednesday, as the country will release February inflation data. The Consumer Price Index is foreseen at 0.8% YoY, while the core reading is expected steady at 1.4%. Markit will publish the preliminary March Manufacturing PMI, foreseen at 55 from 55.1, and the services index, expected at 51 from 49.5 previously.

GBP/USD short-term technical outlook

The persistent dollar’s strength maintained the GBP/USD pair below the 1.3800 threshold, currently trading a few pips above the mentioned daily low. The 4-hour chart shows that the pair has plunged below its moving averages, while the 20 SMA turned firmly bearish below the larger ones. Technical indicators reached oversold levels, partially losing their bearish strength afterwards. Nevertheless, the risk remains skewed to the downside, with further slides expected once below 1.3720, the next support level.

Support levels: 1.3720 1.3680 1.3635

Resistance levels: 1.3805 1.3860 1.3910

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD: Weekly resistance line, 200-SMA test recovery above 1.1300

EUR/USD pauses corrective pullback from two-month-old support around 1.1330 during the initial Asian session on Tuesday. The major currency pair battles the 200-SMA, as well as a descending trend line from January 17.

EUR/USD News

GBP/USD is testing critical hourly support

GBP/USD is holding tight in somewhat bearish territory below 1.35 the figure. Sterling dropped on Monday to its lowest in three weeks versus the US dollar, with traders moving out of risk and into safe havens due to the expectations of Fed tightening and escalating tensions between Russia and Ukraine.

GBP/USD News

Gold struggles around yearly resistance line with eyes on Fed

Gold bounces off intraday low to extend the previous day’s recovery moves towards a one-year-old descending trend line. That said, the yellow metal picks up bids to $1,841 by the press time of Tuesday’s Asian session.

Gold News

Bitcoin finds buyers despite new six-month and 2022 lows, BTC relief rally on deck

Bitcoin price action on Monday was mainly in a full-blown bear attack, with a new 2022 and six-month lows hit. That all changed near the end of the NY equity market session when buyers poured in to rally Bitcoin higher to close in the green for the second day in a row.

Read more

The sell-off continues as Fed, earnings and Ukraine trigger sell off

US stocks are having yet another calamitous start to the week, both the Nasdaq and the S&P 500 are down more than 3% at the time of writing. The question now is, will this sell off last, or have we been wrong-footed by another strange Monday in the land of investing?

Read more

Majors

Cryptocurrencies

Signatures