GBP/USD drops to one-week lows under 1.3875 amid a rally of USD

US dollar extends gains during the American session as US yields soar.
Cable fails to hold to weekly gains, drops below 1.3900.

Matías Salord FXStreet

The GBP/USD extended the decline to 1.3860, the lowest level in a week, on the back of a stronger US dollar across the board. The greenback started a rally after the release of the US official employment report that continues.

NFP numbers came in above expectations and triggered a sell-off in Treasuries. The US 10-year yield jumped toward 1.30%, supporting the rally of the dollar. The DXY gains more than 0.60% on Friday, and is at weekly gains near 92.80.

GBP/USD techs: positive momentum at risk

Yohay Elam, Senior Analyst at FXStreet, says the momentum on the daily chart has flipped to the upside, but only just. “The recent upswing has saved the currency pair from dipping below the 50-day Simple Moving Average (SMA), and it has recently been setting lower highs – a bearish sign. On the other hand, GBP/USD is trading above the 100 and 200-day SMAs.”

On the flip side, Elam warns that significant support is at 1.3875, which is a double-bottom formed in the past few weeks. “It is followed by 1.3845, which was a cushion last month and also where the 200 SMA hits the price. Further down, 1.3760 and 1.3730 are additional levels of interest.”

Technical levels

GBP/USD

Overview
Today last price	1.3866
Today Daily Change	-0.0064
Today Daily Change %	-0.46
Today daily open	1.393

Trends
Daily SMA20	1.3833
Daily SMA50	1.3927
Daily SMA100	1.3923
Daily SMA200	1.3754

Levels
Previous Daily High	1.3949
Previous Daily Low	1.3873
Previous Weekly High	1.3984
Previous Weekly Low	1.3737
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.392
Daily Fibonacci 61.8%	1.3902
Daily Pivot Point S1	1.3885
Daily Pivot Point S2	1.3841
Daily Pivot Point S3	1.3809
Daily Pivot Point R1	1.3962
Daily Pivot Point R2	1.3994
Daily Pivot Point R3	1.4038

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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