GBP/USD: Bears attack 1.3100 at 16-month low amid Russia-Ukraine stand-off

GBP/USD stays on the back foot around multi-day low, pauses three-day downtrend.
Market sentiment dwindles as UK resists backing US over Russia oil import ban.
Brexit red-tape hindered aid to Ukraine, BOE says Brexit fallout finance will take years.
Risk aversion can favor USD, US CPI will also be important to watch going forward.

Anil Panchal FXStreet

GBP/USD treads water around the lowest levels since November 2021, recently making rounds to 1.3100 during Tuesday’s Asian session.

The cable pair slumped to the multi-day low amid broad US dollar strength as the market players rush to risk-safety amid escalating inflation fears due to the Ukraine-Russia tussles. However, headlines suggesting the US allies’ resistance in banning imports from Moscow seem to have paused the GBP/USD bears afterward.

Additionally, chatters over a restart of the human corridor to evacuate Kyiv’s civilians also challenged the pair sellers of late.

Even so, headlines from Reuters suggesting no change in tension joins red-tape due to Brexit to weigh on the cable prices. “Ukrainian officials said a Russian airstrike hit a bread factory in northern Ukraine on Monday, killing at least 13 civilians, while talks between Kyiv and Moscow made little progress towards easing the conflict,” said Reuters.

Amid these plays, S&P 500 Futures drop 0.30%, tracking Wall Street losses, whereas the US 10-year Treasury yields extend the previous day’s rebound from two-month to 1.77% up 2.5 basis points at the latest.

Moving on, a lack of major from the UK and the US may keep GBP/USD traders directed towards the Kyiv-Moscow headlines for fresh impulse. However, Thursday’s US Consumer Price Index (CPI) will be important as the Fed may have to extend push to for 0.50% rate-hike if inflation fears worsen.

Technical analysis

A clear downside break of an ascending trend line from September and May months of 2020, respectively near 1.3315 and 1.3255, directs GBP/USD bears towards the 1.3000 psychological magnet.

Additional important levels

Overview
Today last price	1.3112
Today Daily Change	-0.0137
Today Daily Change %	-1.03
Today daily open	1.3249

Trends
Daily SMA20	1.3492
Daily SMA50	1.3522
Daily SMA100	1.3486
Daily SMA200	1.3653

Levels
Previous Daily High	1.3354
Previous Daily Low	1.3202
Previous Weekly High	1.3438
Previous Weekly Low	1.3202
Previous Monthly High	1.3644
Previous Monthly Low	1.3273
Daily Fibonacci 38.2%	1.326
Daily Fibonacci 61.8%	1.3296
Daily Pivot Point S1	1.3183
Daily Pivot Point S2	1.3116
Daily Pivot Point S3	1.3031
Daily Pivot Point R1	1.3335
Daily Pivot Point R2	1.3421
Daily Pivot Point R3	1.3487

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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