GBP/USD approaches 1.4200 as US dollar accelerates the decline

Pound prints fresh highs versus US dollar and euro.
US dollar under pressure, DXY drops toward monthly lows.

Matías Salord FXStreet

The GBP/USD rose further and climbed to 1.4182, reaching a fresh daily low. Cable is erasing Wednesday’s losses and is approaching the 1.4200 supported by a decline of the US dollar across the board and risk appetite.

Looking again at 1.4200

Equity prices in Wall Street reach fresh highs. The Dow Jones rises by 0.81% and the Nasdaq by 1.72%. The improvement in risk appetite weighed on the US dollar. The DXY fell to 89.78, and it remains near the low, down 0.42% for the day, looking at May’s lows.

Treasuries are rising considerably, also affecting the greenback. The 10-year yield drops 2.45%, and it stands at 1.63%. On Wednesday, after the FOMC minutes, it approached 1.70%.

The GBP/USD erased practically all Wednesday’s losses. The decline from the recent high found support around the 1.4100 area. Above 1.4180, the next resistance is the 1.4200 zone, the last defense toward the May high of 1.4220. The positive momentum will likely hold while above 1.4150/55 (20-SMA in 4-hour chart). A slide below would leave the pound vulnerable to another test of 1.4100.

Technical levels

GBP/USD

Overview
Today last price	1.4176
Today Daily Change	0.0061
Today Daily Change %	0.43
Today daily open	1.4115

Trends
Daily SMA20	1.3985
Daily SMA50	1.3892
Daily SMA100	1.3833
Daily SMA200	1.3491

Levels
Previous Daily High	1.4201
Previous Daily Low	1.41
Previous Weekly High	1.4166
Previous Weekly Low	1.3982
Previous Monthly High	1.4009
Previous Monthly Low	1.3669
Daily Fibonacci 38.2%	1.4138
Daily Fibonacci 61.8%	1.4162
Daily Pivot Point S1	1.4076
Daily Pivot Point S2	1.4037
Daily Pivot Point S3	1.3974
Daily Pivot Point R1	1.4177
Daily Pivot Point R2	1.424
Daily Pivot Point R3	1.4278

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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