- GBP/USD is trading in a relatively tight range for the past two sessions.
- US dollar index trades near multi-month lows above 90.60.
- Risk-aversion weighs upon the sterling.
The GBP/USD pair is moving in a tight trading range and is hovering in a 20-pips movement where the lows are kept near 1.3935 with the intraday high near 1.3960. The pair seems to be exhausted after witnessing a meaningful recovery from Wednesday’s low of 1.3862.
At the time of writing, GBP/USD is trading at 1.3948, up 0.05% on the day.
The pair lost its sheen in the New York session after the release of upbeat US Q1 GDP data, which stood at 6.4%, beating the market expectations of 6.1%. Initial Jobless Claims in April fell to 553k, slightly above the market expectations of 549k and Home Pending Sales, which rose to 23.3% in March on a yearly basis also supported the sentiment around the US dollar. The readings work as a catalyst for the revival of the USD demand, thus exerting pressure on the pair.
On the other hand, the cable is struggling with the domestic chaos related to Brexit. While it got a OK nod from the EU, still there are some issues lingering on, which pose a threat to the fate of the currency. Meanwhile, the Bank of England said on Saturday that it would likely slow down the bond purchase program as the economy rebounds. The optimism surrounds the cable after Goldman Sachs said that Britain's economy is expected to surpass the US economy in 2021. The bank has revised its growth target of 7.8% from 7.1% previously. It seems all the good news has been discounted by the market as the pair largely remain in a range.
Now the focus shifts to the US Personal Income and Spending data, Employment Cost Index, and PCE Price Index later in the day. As for now, the dynamics around the US dollar continue to influence the pair’s performance.
GBP/USD additional levels
|Today last price||1.3949|
|Today Daily Change||0.0008|
|Today Daily Change %||0.06|
|Today daily open||1.3941|
|Previous Daily High||1.3976|
|Previous Daily Low||1.3932|
|Previous Weekly High||1.4009|
|Previous Weekly Low||1.381|
|Previous Monthly High||1.4017|
|Previous Monthly Low||1.3671|
|Daily Fibonacci 38.2%||1.396|
|Daily Fibonacci 61.8%||1.3949|
|Daily Pivot Point S1||1.3923|
|Daily Pivot Point S2||1.3905|
|Daily Pivot Point S3||1.3879|
|Daily Pivot Point R1||1.3967|
|Daily Pivot Point R2||1.3994|
|Daily Pivot Point R3||1.4012|
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.