GBP/USD climbs above 1.2900 on renewed USD weakness


  • GBP/USD gained traction and rose above 1.2900 in the American session.
  • Month-end flows seem to be weighing on the USD. 
  • Upbeat market mood is helping GBP/USD edge higher. 

The GBP/USD pair gained traction in the early American session and climbed to a fresh daily high of 1.2921. As of writing, the pair was up 0.4% on the day at 1.2913.

DXY drops below 94.00

A fresh USD selloff seems to be fueling the pair's rally. In the absence of significant fundamental drivers, the sharp drop witnessed in the US Dollar Index (DXY) suggests that month-end flows are weighing on the greenback. At the moment, the DXY is flat on the day at 93.89.

Earlier in the day, the data from the US showed that employment in the private sector rose by 749,000 in September and the economic activity in the second quarter contracted by 31.4%. Both of these figures came in better than analysts' estimates and helped market sentiment turn positive.

Additionally, US Treasury Secretary Mnuchin noted that he was optimistic about reaching a coronavirus aid deal with Democrats. Boosted by the upbeat data and Mnuchin's remarks, Wall Street's main indexes gained traction and put additional weight on the safe-haven greenback's shoulders. The S&P 500 Index is currently gaining more than 1% at 3,371.

On the other hand, British Prime Minister Boris Johnson acknowledged earlier in the day that the coronavirus is a "serious and growing problem" in the UK. If COVID-19 cases continue to rise in the UK, the GBP could struggle to preserve its strength against its rivals.

Technical levels to watch for

GBP/USD

Overview
Today last price 1.2911
Today Daily Change 0.0046
Today Daily Change % 0.36
Today daily open 1.2865
 
Trends
Daily SMA20 1.2936
Daily SMA50 1.3024
Daily SMA100 1.2744
Daily SMA200 1.272
 
Levels
Previous Daily High 1.2903
Previous Daily Low 1.2823
Previous Weekly High 1.2967
Previous Weekly Low 1.2676
Previous Monthly High 1.3396
Previous Monthly Low 1.2982
Daily Fibonacci 38.2% 1.2872
Daily Fibonacci 61.8% 1.2853
Daily Pivot Point S1 1.2824
Daily Pivot Point S2 1.2783
Daily Pivot Point S3 1.2744
Daily Pivot Point R1 1.2905
Daily Pivot Point R2 1.2944
Daily Pivot Point R3 1.2985

 

 

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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD remains bid and approaches 1.1650 after US data

The persevering selling pressure in the greenback helps EUR/USD advancing to the area of daily highs near 1.1650 on Friday. The data from the US showed on Friday that the economic activity in the private sector continued to expand at a robust pace in early October.

EUR/USD News

GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.

GBP/USD News

GBP/USD treads water near 1.3800 after mixed UK data

GBP/USD came under bearish pressure in the early European session after the data from the UK showed an unexpected contraction in September Retail Sales. However, the British pound managed to pare its losses with the Markit PMI figures surpassing analysts' estimates.

GBP/USD News

Traders swap Dogecoin for Shiba Inu on rumors of Robinhood listing

Shiba Inu coin reached over a million new traders through its listing on Novadax, Public.com and CoinFLEX. A crypto exchange offered traders "Flip DOGE for SHIB" and exchanged Dogecoins for Shiba Inu tokens. 

Read more

Apple talks over battery supplies for EV stall-Reuters

Apple (AAPL) is on a steady move higher ahead of results next week. We have had solid earnings from big names already such as Tesla (TSLA) and Netflix (NFLX), but Apple is the biggest one of all and will be the highlight of the earnings season for many.

Read more

Forex MAJORS

Cryptocurrencies

Signatures