• GBP/USD staged a modest bounce from the 1.3200 neighbourhood, though lacked follow-through.
  • Hawkish Fed expectations underpinned the greenback and capped gains amid Brexit uncertainties.
  • Bears might wait for a sustained break below the 1.3200 mark before positioning for further losses.

The GBP/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating in a narrow trading band, around the 1.3230-35 region through the Asian session.

The pair managed to defend the 1.3200 mark and attracted some buying on the first day of a new week, though the attempted recovery lacked any follow-through amid renewed US dollar strength. As investors' looked past Friday's mixed US NFP report, the USD was back in demand and remained well supported by the prospects for a faster policy tightening by the Fed.

Investors seem convinced that the Fed would be forced to adopt a more aggressive policy response to contain stubbornly high inflation. In fact, the money markets indicate a high probability of the Fed liftoff by May 2022, which, in turn, acted as a tailwind for the greenback. This, along with Brexit-related uncertainties, capped the upside for the GBP/USD pair.

Meanwhile, the global risk sentiment stabilized on the back of preliminary observations from South Africa, suggesting that Omicron patients had relatively mild symptoms. This was evident from a generally positive tone around the equity markets, which might hold back the USD bulls from placing fresh bullish bets and limit the downside for the GBP/USD pair.

Hence, it will be prudent to wait for a sustained break below the 1.3200 mark before positioning for a further near-term depreciating move for the GBP/USD pair. The UK economic docket features the only release of Construction PMI, while there isn't any major market-moving data due from the US. This further warrants some caution for aggressive bearish traders.

That said, a scheduled speech by the Bank of England Deputy Governor Ben Broadbent might influence the British pound and provide some impetus to the GBP/USD pair. This, along with the broader market risk sentiment, will be looked upon for some short-term trading opportunities around the major.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3231
Today Daily Change -0.0008
Today Daily Change % -0.06
Today daily open 1.3239
 
Trends
Daily SMA20 1.3388
Daily SMA50 1.3547
Daily SMA100 1.3668
Daily SMA200 1.3802
 
Levels
Previous Daily High 1.3311
Previous Daily Low 1.3209
Previous Weekly High 1.3371
Previous Weekly Low 1.3194
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.3248
Daily Fibonacci 61.8% 1.3272
Daily Pivot Point S1 1.3195
Daily Pivot Point S2 1.3151
Daily Pivot Point S3 1.3093
Daily Pivot Point R1 1.3297
Daily Pivot Point R2 1.3355
Daily Pivot Point R3 1.3399

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD retreating from around 0.7000

AUD/USD retreating from around 0.7000

The AUD/USD pair hit 0.7008 before retreating, following US stocks’ behavior. Wall Street benefited from easing US government bond yields but ended the day mixed ahead of critical US data.

AUD/USD News

EURUSD bulls losing the battle around 1.0200

EURUSD bulls losing the battle around 1.0200

EUR/USD edged higher on Monday, but remains unable to clear the 1.0200 threshold, trading a handful of pips below the figure. The energy crisis in Europe and tensions with Russia undermined demand for the EUR.

EUR/USD News

Gold bulls looking to overcome the $1,800 barrier

Gold bulls looking to overcome the $1,800 barrier

Gold advanced on Monday, reaching an intraday high of $1,790.01 a troy ounce during the American afternoon, holding nearby. The greenback gave back the Nonfarm Payrolls report-inspired gains and eased on the back of retreating US government bond yields.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Are your bags packed for FOMO Season?

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Are your bags packed for FOMO Season?

The crypto market shows strength to start the second trading week of August, and key levels have been identified. Although it's still early market, current prices may be the ultimate discount in hindsight.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures