GBP/USD consolidates below 1.3600 with support at 1.3540


  • The sterling, rejected at 1.3645, finds support at 1.3540.
  • The US dollar bounces up on safe-haven flows.
  • GBP/USD remains negative, heading towards 1.3161 – Commerzbank.

The British pound has put an end to a four-day rally on Wednesday and pulled back from one-week highs at 1.3645. US dollar's strength has weighed on the cable that has retreated below 1.3600 to consolidate above session lows at 1.3540.

The dollar bounces up on growing inflation concerns

The US dollar bounced up against its main rivals on Wednesday, with the Dollar Index returning to levels near year-to-date highs as a sourer market mood weighed on risky assets. Crude oil prices have reached a fresh seven-year high, boosting concerns about the impact of surging inflation on the post-pandemic recovery.

Beyond that, the US ADP report, which is observed as an advanced indicator of Friday’s Non-Farm Payrolls, has posted a 568.000 increase in September, beating expectations of 428,000 new jobs. A confirmation of these figures later this week might clear the path for the Federal Reserve to start rolling back bond purchases in November, which has been another important source of support for the greenback.

GBP/USD expected to decline towards 1.3161 – Commerzbank

From a broader perspective, Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sees the pair biased lower, towards 1.3161: “GBP/USD has not maintained the break of the 1.3515/04 January 2009 low and 2019 peak – it is not clear if this was a premature break or a false break, but intraday Elliott wave counts remain negative and we will look to reinstate short positions (…) “Currently while capped by 1.3914 we will maintain a negative bias and allow for a scope to the 200-week ma at 1.3161. The recent low is 1.3411.”

Technical levels to watch

GBP/USD

Overview
Today last price 1.3582
Today Daily Change -0.0047
Today Daily Change % -0.34
Today daily open 1.3629
 
Trends
Daily SMA20 1.3687
Daily SMA50 1.3762
Daily SMA100 1.3862
Daily SMA200 1.3845
 
Levels
Previous Daily High 1.3648
Previous Daily Low 1.3584
Previous Weekly High 1.3729
Previous Weekly Low 1.3412
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3624
Daily Fibonacci 61.8% 1.3609
Daily Pivot Point S1 1.3593
Daily Pivot Point S2 1.3557
Daily Pivot Point S3 1.353
Daily Pivot Point R1 1.3657
Daily Pivot Point R2 1.3684
Daily Pivot Point R3 1.372

 

 

 

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 retreats below 1.1300 area as NFP-inspired dollar weakness fades

EUR/USD jumped to a daily high of 1.1333 with the initial market reaction to the disappointing November Nonfarm Payrolls data but quickly returned below 1.1300. Rising US Treasury bond yields seem to be helping the dollar stay resilient against its major rivals. 

EUR/USD News

GBP/USDdrops to 1.3250 area as dollar regains strength

GBP/USD spiked above 1.3300 in the early American session with the initial market reaction to the gloomy US November jobs report. However, the greenback regathered strength on hawkish Fed commentary and forced the pair to turn south.

GBP/USD News

Gold struggles to capitalize on weak NFP data, holds near $1,770

Gold spiked to a daily high near $1,780 with the initial market reaction to the disappointing Nonfarm Payrolls data from the US but seems to be having a difficult time preserving its bullish momentum with the 10-year US T-bond yield staying resilient.

Gold News

The bull and the bear case for BTC

Bitcoin price saw a bullish impulse that faced massive headwinds before it tagged a crucial psychological barrier. Bitcoin is likely to experience massive volatility as the situation resolves over time. 

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures