GBP/USD extends slide and approaches 1.3800

US dollar holds onto modest daily gains across the board.
GBP/USD heads for the lowest daily close in two weeks.

Matías Salord FXStreet

The GBP/USD dropped further after the beginning of the American session and printed a fresh daily low at 1.3821. Cable is hovering around 1.3830 and it has erased Wednesday’s gains.

The combination of a stronger US dollar and also a weaker pound pushed GBP/USD further to the downside. The greenback gained momentum after the release of US economic data.

Inflation data came in above expectations, with the IPP reading for July and jobless claims dropped in line with expectations. The DXY is up 0.11%, at 93.00. The 10-year yield initially rose boosting the dollar and then pulled back to 1.35%. Equity prices in Wall Street are mixed on a session with low volatility.

Looking bearish with some support

From a technical perspective, the outlook for GBP/USD favors the downside for the moment. The pair is testing the 20-day moving average. A daily close clearly under 1.3830 would favor an extension of current down move. The next strong support stands at 1.3800.

On the upside, a recovery above 1.3890 should clear the way to more gains for the pound and improve the outlook. A short-term downtrend line stands at 1.3875.

Technical levels

GBP/USD

Overview
Today last price	1.3834
Today Daily Change	-0.0031
Today Daily Change %	-0.22
Today daily open	1.3865

Trends
Daily SMA20	1.3832
Daily SMA50	1.3901
Daily SMA100	1.3926
Daily SMA200	1.3771

Levels
Previous Daily High	1.3888
Previous Daily Low	1.3803
Previous Weekly High	1.3958
Previous Weekly Low	1.3861
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3855
Daily Fibonacci 61.8%	1.3835
Daily Pivot Point S1	1.3816
Daily Pivot Point S2	1.3767
Daily Pivot Point S3	1.3731
Daily Pivot Point R1	1.3901
Daily Pivot Point R2	1.3937
Daily Pivot Point R3	1.3986

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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