GBP/USD advances toward 1.3780 amid USD pullback, hawkish BOE

  • GBP/USD records fresh daily gains on Tuesday in the early European trading hours.
  • Lower US Treasury yields undermine the demand for the US dollar.
  • Sterling enjoys increasing bets on BOE rate hike and Brexit optimism-led gains.

 GBP/USD shrugs of the previous session’s dull performance and trades higher on Tuesday. The pair jumped nearly 50-pips after opening lower as the trading session began. At the time of writing, GBP/USD is trading at 1.3771, up 0.32% for the day.

The move is primarily sponsored by the selling pressure in the greenback. A number of factors assisted the recent pullback in the buck. A weaker US data along with global rate hike expectations weigh on the prospects of the US dollar. The US Industrial Production fell 1.3% in September due to supply-chain constraints and Hurricane Ida. The US benchmark 10-year bond yields retreat toward 1.57% as investors digested Fed’s hawkish expectations.

On the other hand, the British pound gained following the hawkish comments from the Bank of England (BOE) Governor Andrew Bailey. He was quoted as saying that the Bank of England (BOE) is set to raise interest rates as inflation risks arise. Nevertheless, BOE’s members Silvana Tenreyro and Catherine Mann retreated their view on inflation as “transitory”.

Meantime, UK’s Prime Minister Borris Johnson promised to fix a solution to Brexit’s Northern Ireland Protocol. This, in turn, uplifted the British pound in recent trades.

As for now, traders keep their focus on the US Building Permits and Housing Starts to gauge market sentiment.

GBP/USD technical levels


Today last price 1.377
Today Daily Change 0.0043
Today Daily Change % 0.31
Today daily open 1.3727
Daily SMA20 1.3621
Daily SMA50 1.3716
Daily SMA100 1.3815
Daily SMA200 1.3847
Previous Daily High 1.3766
Previous Daily Low 1.3709
Previous Weekly High 1.3773
Previous Weekly Low 1.3568
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3731
Daily Fibonacci 61.8% 1.3744
Daily Pivot Point S1 1.3702
Daily Pivot Point S2 1.3678
Daily Pivot Point S3 1.3646
Daily Pivot Point R1 1.3759
Daily Pivot Point R2 1.379
Daily Pivot Point R3 1.3815



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