GBP/USD drops toward 1.4150 as the US dollar strengthens on economic data

Cable retreats from monthly highs, turns negative for the day.
US dollar rises across the board supported by US economic data.

Matías Salord FXStreet

The GBP/USD dropped to 1.4153 amid a rally of the US dollar across the board. Cable retreated sharply after hitting at 1.4233 the highest level since February.

An impressive reading of the preliminary IHS Markit for May of the service sector boosted the dollar. Also a rebound in US yields contributed to the rally of the greenback.

The DXY is up 0.25% on Friday after spending most of the day in negative territory. It bottomed at 89.65, the lowest level since March before turning to the upside. The 10-year yield rose from the lowest in a week at 1.61% to 1.63%.

The GBP/USD pulled back and EUR/GBP rebounded back above 0.8600. The pound weakened during the American session. Versus the US dollar, it is trading at 1.4165, down for the day but still up 75 pips from the level it had a week ago. It is on its way to the highest weekly close since 2018.

Technical levels

GBP/USD

Overview
Today last price	1.4175
Today Daily Change	-0.0016
Today Daily Change %	-0.11
Today daily open	1.4191

Trends
Daily SMA20	1.4003
Daily SMA50	1.3896
Daily SMA100	1.3838
Daily SMA200	1.3497

Levels
Previous Daily High	1.4193
Previous Daily Low	1.4101
Previous Weekly High	1.4166
Previous Weekly Low	1.3982
Previous Monthly High	1.4009
Previous Monthly Low	1.3669
Daily Fibonacci 38.2%	1.4158
Daily Fibonacci 61.8%	1.4136
Daily Pivot Point S1	1.413
Daily Pivot Point S2	1.407
Daily Pivot Point S3	1.4039
Daily Pivot Point R1	1.4222
Daily Pivot Point R2	1.4253
Daily Pivot Point R3	1.4313

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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