• US dollar gains momentum near the end of the week on higher US yields.
  • GBP/USD unable to break key resistance again; upside remains limited.

The GBP/USD peaked on Friday at 1.3887, the highest level in a week, and then lost momentum. Near the end of the week, it is trading at 1.3840, around the same level it had a week ago, after erasing daily gains.

The greenback strengthened late on Friday, amid higher US yields and some risk aversion. The US 10-year yield rose to 1.35%, after opening the day around 1.30%. Economic data from the US showed higher than expected PPI inflation in August.

Next week’s US reports will be relevant. “Retail sales will give more information on how much goods consumption is slowing as the effect of the stimulus checks fade. Very strong US goods consumption is a key driver behind the global manufacturing overheating and pressure on global freight. US CPI inflation and regional business surveys will also be very interesting”, mentioned analysts at Danske Bank. The inflation figures will probably be the most important event.

Limited while under 1.3900

The GBP/USD again failed to break above 1.3900. The same situation happed last week and during mid-August. The area has become a critic level; while below the upside for cable will be limited, with a break higher clearing the way to more gains. On the flip side, the immediate support could be seen at 1.3830 followed by 1.3790 and 1.3750

Technical levels

GBP/USD

Overview
Today last price 1.3847
Today Daily Change 0.0011
Today Daily Change % 0.08
Today daily open 1.3836
 
Trends
Daily SMA20 1.3768
Daily SMA50 1.3807
Daily SMA100 1.3918
Daily SMA200 1.3823
 
Levels
Previous Daily High 1.3863
Previous Daily Low 1.3754
Previous Weekly High 1.3892
Previous Weekly Low 1.3731
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3821
Daily Fibonacci 61.8% 1.3795
Daily Pivot Point S1 1.3772
Daily Pivot Point S2 1.3709
Daily Pivot Point S3 1.3663
Daily Pivot Point R1 1.3881
Daily Pivot Point R2 1.3926
Daily Pivot Point R3 1.399

 

 

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