• DXY up by 0.82%, near multi-year highs.
  • US yields rise further, 10-year back above 3.0%-
  • GBP/USD drops for the fourth consecutive day, below July lows.

The GBP/USD dropped further and printed a fresh two-year low at 1.1736. It is undress pressure amid a stronger US dollar and risk aversion.

Yields up, stocks sharply lower

Equity prices in Wall Street are falling sharply. The Dow Jones is at 12 day lows, falling by 1.44% and the Nasdaq tumbles more than 2%. The FTSE 100 lost 0.22%.

Despite risk aversion, Treasury bonds are adding to last week's losses. The US 10-year stands at 3.02%, the highest since July 21 and the 30-year is at 3.25%, the highest since July 8. The US Dollar Index is testing 109.00, up 0.82%, on its way to the highest daily close since September 2002.

Expectations about more aggressive tightening from the Federal Reserve keeps the dollar on demand ahead of the Jackson Hole symposium. On Friday, Jerome Powell will deliver a speech. A 50 basis point rate hike is fully priced, although a 75 bps hike is also likely according to money markets.

Below 1.1740, the next support could be seen around 1.1710 and then not much until 1.1630. The 2020 low waits near 1.1400 but before a strong area is located at 1.1450. On the upside, 1.1795 has become the immediate resistance, followed by 1.1835 (Aug 22 high).

Technical levels

GBP/USD

Overview
Today last price 1.1758
Today Daily Change -0.0070
Today Daily Change % -0.59
Today daily open 1.1828
 
Trends
Daily SMA20 1.2102
Daily SMA50 1.2088
Daily SMA100 1.2369
Daily SMA200 1.2876
 
Levels
Previous Daily High 1.1937
Previous Daily Low 1.1792
Previous Weekly High 1.2148
Previous Weekly Low 1.1792
Previous Monthly High 1.2246
Previous Monthly Low 1.176
Daily Fibonacci 38.2% 1.1847
Daily Fibonacci 61.8% 1.1882
Daily Pivot Point S1 1.1768
Daily Pivot Point S2 1.1708
Daily Pivot Point S3 1.1623
Daily Pivot Point R1 1.1913
Daily Pivot Point R2 1.1998
Daily Pivot Point R3 1.2058

 

 

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