- GBP/USD rebounds from the 1.3450 level (low of the year).
- USD profit-taking is sparking a rebound in most major currency pairs.
- The USD dollar got a strong boost on Tuesday as US Treasury yields rose to levels not seen since 2011.
The GBP/USD is trading at around 1.3511 down 0.33% on Tuesday’s trading.
From the high at 1.3570 made in Asia, the pair fell about 120 pips on Tuesday. In the American session, the GBP/USD tested the 1.3450 level and market participants started to take profits on their shorts. Cable is now trading above the 1.3500 handle.
On Tuesday, the US dollar got a strong boost higher as the US Treasury yields rose above levels not seen since the summer of 2011. As a matter of fact, the 10-year Treasury yield benchmark rose to the 3.060% region.
Earlier the US Retail Sales came mixed but the market disregarded the news and kept buying USD across the board. Earlier in the European session, the UK wages failed to impress market participants as the data matched analysts’ expectations.
GBP/USD 4-hour chart
-636619971567811649.png)
The medium-term trend is bearish and bulls are trying to stage a reversal up from the 1.3500 handle. The 1.3550 psychological level is the main resistance to break for buyers, the next resistance is seen at the 1.3600 and 1.3700 figure and previous swing low. To the downside, supports are seen at the 1.3500 figure and at the 1.3450 low of the day/year.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold: Middle East war fears spark fresh XAU/USD rally, will it sustain?
Gold price is trading close to $2,400 early Friday, reversing from a fresh five-day high reached at $2,418 earlier in the Asian session. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row.
Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.