GBP/USD eases below 1.3800 ahead of UK Retail Sales


  • GBP/USD remains poised for weekly losses and continues to trade lower on Friday.
  • US Dollar Index refuses to step back as steady near 93.00, near the two-weeks high.
  • The British pound pressured on risk-averse mood, Brexit fears. 

GBP/USD edges lower on Friday morning following the previous session’s downside momentum. The pair tried to move above 1.3850 in the American session but slide below 1.3750 after higher-than-expected US Retail sales data released on Thursday.

As of writing, GBP/USD is trading at 1.3784, down 0.03% for the day.

The movement in GBP/USD is primarily driven by the overnight gains in the greenback. Buoyed by the better-than-expected economic data and the concerns about the rapid increase of the Delta variant of coronavirus cases globally kept USD in demand owing to its safe-haven appeal.

Furthermore, the growing expectations that Fed should begin tapering in November also add to the attractiveness of the greenback. As per the latest Reuters opinion poll,  nearly three-quarters of the economists looking at the possibility of the start of the tapering as soon as November.

The US Retail sales jumped 0.7% in August following an upward revised 1.8% fall in July and against the market expectations of a 0.8% drop.

The pound remained weak on reduced investor’s risk appetite amid growing concerns about the pace of global economic recovery.

It is worth noting that, S&P 500 Futures is trading at 4,473.75, down 0.16% for the day.

Meanwhile, Brexit Minister David Frost said on Thursday that the special status accorded per initial Brexit deal retained the EU law which would be abolished. The move is expected to worsen the ongoing cold war between the UK and EU, another weighing factor for the sterling.

As for now, investors turn their attention to the UK Retail sales data to gauge market sentiment.

GBP/USD additional levels

GBP/USD

Overview
Today last price 1.3792
Today Daily Change -0.0002
Today Daily Change % -0.01
Today daily open 1.3794
 
Trends
Daily SMA20 1.3782
Daily SMA50 1.3808
Daily SMA100 1.3913
Daily SMA200 1.3834
 
Levels
Previous Daily High 1.3853
Previous Daily Low 1.3765
Previous Weekly High 1.3889
Previous Weekly Low 1.3726
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3798
Daily Fibonacci 61.8% 1.3819
Daily Pivot Point S1 1.3755
Daily Pivot Point S2 1.3716
Daily Pivot Point S3 1.3667
Daily Pivot Point R1 1.3843
Daily Pivot Point R2 1.3892
Daily Pivot Point R3 1.3931

 

 


 

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