GBP/USD breaks below 1.3000 to a 20-day low amid a stronger US Dollar


  • US Dollar extends gains on a quiet American session ahead of holidays. 
  • Cable falls under 1.3000,  to test March lows. 

The GBP/USD pair dropped further during the American session on the back of a stronger US dollar across the board. The greenback started to rise over the European session amid global growth concerns and gained strength following the release of better-than-expected US economic data. 

Upbeat US data and Kaplan 

Retail sales rose 1.6% in March in the US surpassing expectations of a 0.9% gain. “After rising at a 2.5% pace in Q4, consumer spending is poised for a slowdown in the first quarter. However, the better-than-expected 1.0% increase in control group sales in today’s report feeds into the calculation in the GDP report and suggests a more modest slowing than anticipated by many forecasters”, said Wells Fargo analysts. In another report, initial jobless claims dropped for the fifth-week in-a-row, to a fresh 50-year low. On the negative front, the preliminary Markit PMI showed lower than expected numbers.

Dallas Federal Reserve Bank President Robert Kaplan said he is getting more confident about the growth outlook for the current year as confidence in growth is firm and has been building. He highlighted a tight job market and a strong consumer. On the international front, mentioned he is less worried about China but warned Europe is still decelerating. 

The US dollar kept rising at a modest pace and GBP/USD fell to 1.2977, the lowest level in almost three weeks and very close to the March low at 1.2960. As of writing, was hovering around 1.2980/85, holding below the 1.3000 zone, on its way to the lowest close since mid-February. The US Dollar Index was up 0.45%, at 97.45, trading at the highest since April 5. 

GBP/USD Technical outlook 

Valeria Bednarik, Chief Analyst at FXStreet notes that the GBP/USD pair is breaking below a daily ascendant trend line coming from March low at 1.2959. “With the line currently at around 1.3000, offering an immediate short-term resistance.”

The pair may attempt to recover the 1.3000 level, yet if it fails, lower lows are likely in the following sessions, says Bednarik. He sees next support levels at 1.2960, 1.2920 and 1.2875. 

More Levels 

GBP/USD

Overview
Today last price 1.2988
Today Daily Change -0.0058
Today Daily Change % -0.44
Today daily open 1.3046
 
Trends
Daily SMA20 1.3102
Daily SMA50 1.3098
Daily SMA100 1.2952
Daily SMA200 1.2969
Levels
Previous Daily High 1.3069
Previous Daily Low 1.3028
Previous Weekly High 1.3133
Previous Weekly Low 1.303
Previous Monthly High 1.3384
Previous Monthly Low 1.296
Daily Fibonacci 38.2% 1.3044
Daily Fibonacci 61.8% 1.3053
Daily Pivot Point S1 1.3026
Daily Pivot Point S2 1.3006
Daily Pivot Point S3 1.2985
Daily Pivot Point R1 1.3067
Daily Pivot Point R2 1.3088
Daily Pivot Point R3 1.3108

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD under pressure near 1.1380 ahead of Powell

EUR/USD sees fresh selling and tests daily lows near 1.1380 region amid a broad-based US dollar comeback, as all eyes remain on the Fed Chair Powell's speech for fresh insights on the US interest rates outlook. 

EUR/USD News

GBP/USD keeps gains near 1.2760 post-UK data

The GBP/USD pair keeps the bid tone intact near the 1.2760 region despite a sharp drop in the UK CBI Retailing Reported Sales and broad US dollar recovery. Eyes on Powell's speech. 

GBP/USD News

USD/JPY: recovers to 107 area as markets wait for Powell's speech

10-year US T-bond yield extends slide, drops below 2%. US Dollar Index stays calm near the 96 mark. Fed's Williams & Bostic, FOMC Chairman Powell are scheduled to speak later today.

USD/JPY News

Gold consolidates recent upsurge to multi-year tops, comfortable above $1400 mark

Gold adds to the post-FOMC upsurge amid escalating geopolitical tensions. A modest USD uptick/stability in equity markets prompts some profit-taking. The downside remains limited ahead of Powell’s speech later this Tuesday.

Gold News

US Conference Board Consumer Confidence Preview: Employment sustains optimism

Income gains, employment and general economic prosperity support confidence. Decline in Q2 GDP not impacting sentiment. Low inflation and faling interest rates are positive consumer trends.

Read more

Majors

Cryptocurrencies

Signatures