GBP/USD falls under 1.3800 to one-week lows


  • Pound weakens near the end of the week amid risk aversion.
  • GBP/USD could post the lowest weekly close since April.

The recovery of GBP/USD was short-lived and after reaching 1.3865, it turned to the downside. Recently broke under European session lows and fell to 1.3771, hitting the lowest level since July 9. It remains under 1.3800, on its way toward the lowest weekly close since April.

Dollar mixed, pound down

Over the last hour the pound weakened across the board. EUR/USD broke above 0.8555 while GPB/USD under 1.3800. At the same time, equity indices turned negative in Wall Street. The Dow Jones is down by 0.25% and the Nasdaq 0.07% after a positive opening.

Economic data from the US came in mixed. Retail sales surpass expectations with an unexpected increase of 0.6% in June. The preliminary reading of consumer sentiment from the University of Michigan showed a decline in the main index to 80.8, below the 86.5 expected. Next week, no major economic reports are due in the US and Fed’s officials will remain in silence ahead of the next FOMC meeting (July 27/28).

Comments from Bank of England officials during the week, pointing to the need to reduce asset purchases earlier than expected, failed to lift the pound significantly. “The impact on GBP was limited, partly because the next step in the eventual policy normalisation process (rate hikes) remains still some way off. Despite the increasing Covid-19 cases, the UK government will deliver the final part of the reopening/end of restrictions on 19 July”, explain ING analysts. Next week UK data includes June retails sales and July PMI, both reports due on Friday.

Technical levels

GBP/USD

Overview
Today last price 1.3782
Today Daily Change -0.0046
Today Daily Change % -0.33
Today daily open 1.3828
 
Trends
Daily SMA20 1.3856
Daily SMA50 1.4016
Daily SMA100 1.3937
Daily SMA200 1.3692
 
Levels
Previous Daily High 1.3899
Previous Daily Low 1.3805
Previous Weekly High 1.3908
Previous Weekly Low 1.3742
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.3841
Daily Fibonacci 61.8% 1.3863
Daily Pivot Point S1 1.3789
Daily Pivot Point S2 1.375
Daily Pivot Point S3 1.3695
Daily Pivot Point R1 1.3883
Daily Pivot Point R2 1.3938
Daily Pivot Point R3 1.3977

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles to rebound, holds near 1.1150 after US data

EUR/USD trades around 1.1150 in the early American session on Friday as investors assess the latest inflation data from the US. According to the US Bureau of Economic Analysis, Core PCE Price Index rose to 4.9% on a yearly basis in December from 4.7% in November, surpassing the market expectation of 4.8%. 

EUR/USD News

GBP/USD clings to small gains above 1.3400 on mixed US data

GBP/USD posts modest daily gains slightly above 1.3400 on Friday as the dollar rally loses steam. The data from the US showed that the core PCE inflation edged higher to 4.9% in December. On a negative note, Personal Spending contracted by 0.6% on a monthly basis.

GBP/USD News

Gold recovers modestly after US data, stays below $1,800

Gold managed to stage a rebound from the multi-week low it set below $1,780 but continues to trade deep in the red near $1,790. The benchmark 10-year US Treasury bond yield is rising more than 1% on the day after US data, limiting XAU/USD's recovery.

Gold News

Bitcoin Weekly Forecast: Federal Reserve cannot tame BTC’s uptrend

Bitcoin has experienced some significant losses over the past few weeks, with a more dramatic drop occurring this week after the Fed's decision was announced. As losses have extended and BTC has entered into the $30,000 zone, concerns regarding Bitcoin being in a bear market have increased.

Read more

Apple share price set to rise after another record quarter

With the Nasdaq closing at its lowest level in seven months yesterday, the Apple share price has also found itself on the end of the recent weakness in tech shares, down over 12% from its record highs in early January.

Read more

Forex MAJORS

Cryptocurrencies

Signatures