GBP/USD dives to fresh multi-week lows amid sustained USD buying

  • GBP/USD remained under some heavy selling pressure amid a broad-based USD strength.
  • The Fed’s hawkish turn, the risk-off mood continued boosting the safe-haven greenback.
  • COVID-19/Brexit jitters weighed on the British pound and contributed to the selling bias.

The USD buying picked up pace during the early North American session and dragged the GBP/USD pair to fresh multi-week lows, around the 1.3845 region in the last hour.

The pair extended this week's post-FOMC bearish breakdown momentum and remained under some heavy selling pressure on the last trading day of the week. This marked the sixth consecutive session of downfall – also the eighth day of a negative move in the previous nine – and was sponsored by a combination of factors.

Investors remain worried that the government's decision to delay the final stage of easing lockdown measures to July 19 could hinder the nascent economic recovery. The concerns were further fueled by Friday's weaker UK macro data, showing that the overall and core Retail sales declined 1.4% and 2.1%, respectively, in May.

This comes on the back of concerns about the EU-UK collision over Norther Ireland protocol, which continued acting as a headwind for the British pound. Apart from this, the prevalent strong bullish sentiment surrounding the US dollar was seen as another factor that contributed to the GBP/USD pair's downward trajectory.

The greenback remained well supported by the Fed's sudden hawkish turn and shot to over two-month tops. The already stronger buck got an additional boost after St. Louis Fed President James Bullard, speaking to CNBC, said that the Fed Chairman Jerome Powell officially opened taper discussion at the last meeting.

Meanwhile, a selloff in the global equity market further benefitted the greenback's relative safe-haven status, which, to a larger extent, offset a fresh leg down in the US Treasury bond yields. This, along with a sustained break below 100-day SMA, further aggravated the intraday bearish pressure around the GBP/USD pair.

Technical levels to watch


Today last price 1.3849
Today Daily Change -0.0073
Today Daily Change % -0.52
Today daily open 1.3922
Daily SMA20 1.4131
Daily SMA50 1.4019
Daily SMA100 1.3937
Daily SMA200 1.3593
Previous Daily High 1.4009
Previous Daily Low 1.3896
Previous Weekly High 1.4191
Previous Weekly Low 1.4073
Previous Monthly High 1.4234
Previous Monthly Low 1.3801
Daily Fibonacci 38.2% 1.3939
Daily Fibonacci 61.8% 1.3966
Daily Pivot Point S1 1.3876
Daily Pivot Point S2 1.3829
Daily Pivot Point S3 1.3763
Daily Pivot Point R1 1.3989
Daily Pivot Point R2 1.4055
Daily Pivot Point R3 1.4102



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 hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.


GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.


XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more