GBP/USD breaks below 1.3050 as the US dollar gains momentum

Pound under pressure ahead of the weekend hits fresh daily lows.
US Dollar recovers momentum, DXY trims losses still under 93.00

Matías Salord FXStreet

The GBP/USD broke below 1.3050 and tumbled to 1.3017, hitting a fresh two day low. The move lower took place amid a recovery of the US dollar across the board. The retreat in equity markets also hit the pound that dropped to fresh lows.

The greenback gained momentum as equity prices in Wall Street move lower. The Dow Jones is now in red, falling 0.10% and the Nasdaq drops 0.18%. The greenback strengthened during the American session. Expectations about a new round of fiscal stimulus are diminishing. US economic data showed activity continued to recover in October.

The pound is under pressure ahead of the weekend. EUR/GBP rose to 0.9089, reaching the highest level in two days and turned positive for the week. The Brexit saga continues to be a key driver in GBP.

Technical outlook

From a technical perspective, GBP/USD intraday's outlook continues to point to the downside. Below 1.3020, a test of 1.3000 seems likely. A recovery to 1.3075 would alleviate the pressure and a consolidation above 1.3100 would change the bias.

The weekly chart shows the pound is about to post the highest close since late August, but far from the top, suggesting difficulties in extending the upside.

GBP/USD

Overview
Today last price	1.303
Today Daily Change	-0.0052
Today Daily Change %	-0.40
Today daily open	1.3082

Trends
Daily SMA20	1.2946
Daily SMA50	1.3015
Daily SMA100	1.2856
Daily SMA200	1.271

Levels
Previous Daily High	1.3154
Previous Daily Low	1.3071
Previous Weekly High	1.3083
Previous Weekly Low	1.2863
Previous Monthly High	1.3482
Previous Monthly Low	1.2676
Daily Fibonacci 38.2%	1.3102
Daily Fibonacci 61.8%	1.3122
Daily Pivot Point S1	1.3051
Daily Pivot Point S2	1.3019
Daily Pivot Point S3	1.2968
Daily Pivot Point R1	1.3134
Daily Pivot Point R2	1.3185
Daily Pivot Point R3	1.3217

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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