GBP/USD faces resistance near 1.3930, holds to modest weekly gains


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  • Pound still weak across the board after the dovish hold from the Bank of England.
  • GBP/USD up for the week, still under the 20-WMA.

The GBP/USD trimmed losses during Friday's American session, boosted by a decline of the US dollar across the board. Cable rose back above 1.3900 and climbed to 1.3930. It continues to move sideways, with the pound being the weakest among the G10 space.

US data not positive for the greenback

Economic data from the US did not help the greenback. The income and spending report showed no major surprises. The Core PCE rose to 3.4%, the highest level since 1991, as expected. Later then University of Michigan Consumer Sentiment Index came in below expectations at 85.5 in June-

The DXY is losing 0.15%, trading at 91.65, after finding support above 91.50. The weakness seen earlier in the US dollar is easing near the end of the week.

Pound among the worst

The tone of the Bank of England on Thursday, when, as expected, introduced no policy changes, was on the dovish side and weakened the pound. “Despite the dovish hold, the short sterling futures strip still suggests some odds of the first hike in Q4 2021, rising significantly in Q1 and priced by Q2 2022”, said analyst at Brown Brothers Harriman.

The GBP/USD is about to end the week higher, recovering a fraction of the previous week’s losses. It peaked near 1.4000 on Wednesday before starting to move lower. So far, the area around 1.3890 capped the latest decline. In the weekly chart, cable has been unable to recover the 20-SMA that stands at 1.3930. The bias in the very short-term points to the downside while under 1.3930/35. 

Technical levels

GBP/USD

Overview
Today last price 1.3925
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.3922
 
Trends
Daily SMA20 1.407
Daily SMA50 1.4035
Daily SMA100 1.3949
Daily SMA200 1.3618
 
Levels
Previous Daily High 1.3987
Previous Daily Low 1.3889
Previous Weekly High 1.4133
Previous Weekly Low 1.3792
Previous Monthly High 1.4234
Previous Monthly Low 1.3801
Daily Fibonacci 38.2% 1.3927
Daily Fibonacci 61.8% 1.3949
Daily Pivot Point S1 1.3878
Daily Pivot Point S2 1.3835
Daily Pivot Point S3 1.3781
Daily Pivot Point R1 1.3976
Daily Pivot Point R2 1.403
Daily Pivot Point R3 1.4073

 

 

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