GBP/USD consolidates near 1.3920 amid renewed USD strength


  • GBP/USD stalls after the previous day’s sharp rise. 
  • Uptick in US treasury yields lifts demand for the US dollar.
  • GBP remains under pressure amid Brexit chaos and delayed economic reopening.

The appreciative move in the US dollar keeps GBP/USD gains under check. The pair accumulated stellar gains on Monday after the heavy losses incurred in the previous weeks. However, it lacks the strength to hold onto the gains.

At the time of writing, GBP/USD trades at 1.3916, down 0.10% for the day.

The US Dollar Index (DXY), which tracks the performance of the greenback against its six major rivals, is little changed at 91.93 with 0.03% gains. The DXY declined 0.52% in the previous session after retracing from two months high.

The US 10-year benchmark yields stood at 1.49% with 0.59% gains as investors continued to digest the impact of the  Fed’s hawkish tone in the last week and as pressure mounted due to reflation trades.

In the meantime, Fed Chair Jerome Powell in his remark prepared ahead of a House hearing today stated that the central bank will continue to support the economy.

In addition to that, St. Louis Fed President James Bullard commented that the first increase could come as soon as next year. New York Fed President John Williams said economic data and conditions have not progressed much to shift FOMC’s monetary policy stance. The dollar gained on the volatility following mixed comments from Fed officials.


On the other hand, the British pound remains pressurized due to the delay in ending all COVID-19 restrictions on June 21. The decision could impact sterling's valuation negatively for the time being.

Meanwhile, UK Prime Minister Boris Johnson said at a news conference that he is now looking to July 19 as the next date to uplift all the restrictions.

In addition, the Brexit saga continues to weigh on the performance of the cable as there was no breakthrough on the deadlock following the G7 summit. UK Brexit Minister David Frost is due to meet his EU counterpart Maros Sefcovic this week.

Market participants look forward to the US Existing Home Sales data, Richmond Fed Manufacturing Index, and Fed Chair Powell Testimony to gain some fresh trading impetus.

GBP/USD additional levels

GBP/USD

Overview
Today last price 1.3921
Today Daily Change -0.0013
Today Daily Change % -0.09
Today daily open 1.3934
 
Trends
Daily SMA20 1.4103
Daily SMA50 1.4025
Daily SMA100 1.394
Daily SMA200 1.3603
 
Levels
Previous Daily High 1.3937
Previous Daily Low 1.3787
Previous Weekly High 1.4133
Previous Weekly Low 1.3792
Previous Monthly High 1.4234
Previous Monthly Low 1.3801
Daily Fibonacci 38.2% 1.388
Daily Fibonacci 61.8% 1.3844
Daily Pivot Point S1 1.3835
Daily Pivot Point S2 1.3735
Daily Pivot Point S3 1.3684
Daily Pivot Point R1 1.3985
Daily Pivot Point R2 1.4036
Daily Pivot Point R3 1.4135

 

 

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 falls toward 1.1850 amid souring market mood

EUR/USD is trading closer to 1.1850, down on the day, as Monday's concerns about slower growth following the disappointing ISM Manufacturing PMI have spilled over to Tuesday. The risk-off mood, also backed by rising US covid cases, is boosting the safe-haven dollar.

EUR/USD News

GBP/USD clings to 1.39 as UK covid cases fall

GBP/USD is trading around 1.39, little changed, as UK covid cases extend their drop toward 20,000. The broader market mood is also calmer despite growth worries. 

GBP/USD News

XAU/USD continues to target $1804 and $1800 support levels

Gold is holding the lower ground, heading closer towards $1800, as traders remain cautious and refrain from placing any fresh directional bets ahead of the all-important US NFP data due this Friday.

Gold News

Bitcoin and altcoins correct before another run-up

Bitcoin price has dropped 10% since its August 1 swing high at $42,599. Ethereum price follows BTC and has shed 9% as it bounces off the $2,460 support level. Ripple price came extremely close to retesting the range high at $0.785 but is now undergoing correction.

Read more

Delta Doom is set to storm America, the dollar could emerge as top dog

"America is coming back" – these words by US President Joe Biden have sounded like a victory lap for the country's success in depressing COVID-19 cases, hospitalizations, and especially deaths. The charts are indeed impressive:

Read more

Forex MAJORS

Cryptocurrencies

Signatures