GBP/USD clings to multi-month low near 1.3700 on firmer US dollar


  • GBP/USD extends the previous week’s delines and trades lower on Monday.
  • Supply-chain disruptions, limp economic recovery took a toll on sterling performance.
  • Broad-based US dollar gains keep pressure on GBP/USD.

GBP/USD edges lower on Monday following the previous week’s downside momentum. The pair opened higher but failed to capitalize the upside momentum and skids towards the multi-month low near 1.3700.

As of writing, GBP/USD is trading at 1.3709, down 0.23% for the day.

The movement in GBP/USD is primarily sponsored by the gains in the greenback. Buoyed by the better-than-expected economic data and the concerns about the rapid increase of the Delta variant of coronavirus cases globally pushed demand for the US dollar owing to its safe-haven appeal.

The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals, trades above 93.00 ahead of the FOMC two-day meeting later in the week.

On the other hand, the sterling remained on the back foot as investors remained nervous about the UK inflation growth. A higher inflation reading could force the Bank of England (BOE) to raise interest rates and crunch the already ailing economy. 

The data released earlier in the month revealed that the UK economy grew by just 0.1% in July, the pace of the growth was lower than the 1% growth in the previous month.    

Meanwhile, US House of Representatives Speaker Nancy Pelosi warned Britain on destabilizing Northern Ireland’s (NI) peace and said there will be no US-UK trade deal before the British government resolved Brexit disagreement with the European Union (EU).

GBP/USD additional levels

GBP/USD

Overview
Today last price 1.3709
Today Daily Change -0.0032
Today Daily Change % -0.23
Today daily open 1.3741
 
Trends
Daily SMA20 1.3788
Daily SMA50 1.3805
Daily SMA100 1.3912
Daily SMA200 1.3837
 
Levels
Previous Daily High 1.3813
Previous Daily Low 1.3728
Previous Weekly High 1.3913
Previous Weekly Low 1.3728
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.376
Daily Fibonacci 61.8% 1.378
Daily Pivot Point S1 1.3708
Daily Pivot Point S2 1.3676
Daily Pivot Point S3 1.3624
Daily Pivot Point R1 1.3793
Daily Pivot Point R2 1.3845
Daily Pivot Point R3 1.3878

 

 

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