GBP/USD drops further to 1.3000, remains vulnerable

Pound among worst performers on Monday, unable to find support.
GBP/USD down more than 200 pips from Friday’s peak.

Matías Salord FXStreet

The GBP/USD pair dropped further during the American session on the back of a stronger US dollar. The pair bottomed at 1.3001 and remains near the lows, with the bearish tone intact.

A weaker GBP, plus a stronger DXY

On European hours, the slide of the pound drove the GBP/USD pair to the downside. It weakened after a big rally on Thursday and Friday following the Bank of England meeting. Concerns about the trade negotiations between the European Union and the United Kingdom, expected to begin in March, accelerated the bearish correction.

More recently the latest leg lower took place as the pound remains unable to find support and following the released of better-than-expected US economic data. The ISM manufacturing index jumped to 50.9 from 47.8 in December, the highest level since July.

The DXY has erased most of Friday’s losses. It is up by 0.45%, trading back above 97.80. US yields are also higher on Monday but off highs. In Wall Street, equity prices are up, recovering partially from Friday’s sell-off. The Dow Jones gains 0.95% and the Nasdaq climbs 1.45%.

More levels

GBP/USD

Overview
Today last price	1.3011
Today Daily Change	-0.0194
Today Daily Change %	-1.47
Today daily open	1.3205

Trends
Daily SMA20	1.3071
Daily SMA50	1.3073
Daily SMA100	1.2874
Daily SMA200	1.2696

Levels
Previous Daily High	1.3207
Previous Daily Low	1.3076
Previous Weekly High	1.3207
Previous Weekly Low	1.2974
Previous Monthly High	1.3281
Previous Monthly Low	1.2954
Daily Fibonacci 38.2%	1.3157
Daily Fibonacci 61.8%	1.3126
Daily Pivot Point S1	1.3118
Daily Pivot Point S2	1.3032
Daily Pivot Point S3	1.2987
Daily Pivot Point R1	1.3249
Daily Pivot Point R2	1.3294
Daily Pivot Point R3	1.338

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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