GBP/USD consolidates below 1.3700 amid steady USD, Brexit jitters


  • GBP/USD manages to hold the previous session’s momentum on Friday.
  • US Dollar Index whipsaws around 94.00 ahead of US Retail Sales data.
  • Mixed play amid Brexit concerns and dovish BOE official limits the upside for the British pound.

The GBP/USD pair consolidates gains in the Asian trading hours. The pair retreated after touching 1.3700 since September 28 in Thursday's US session. At the time of writing, GBP/USD is trading at 1.3678, up 0.04% for the day.

Investors digested higher inflation data and a drop in the US Initial Jobless Claims. The readings confirmed Fed’s stance on tapering as soon as mid-November. The US Producer Price Index (PPI) came at 0.5% in September YoY basis. The Initial Jobless Claims fell 295K, much below the market estimates of 319K.

On the other hand, the British pound gains despite the dovish comments from the Monetary Policy Committee (MPC) member Silvana Tenreyo. She shrugged off the current rout in the UK inflation levels as being temporary and urged not to hike interest rates.

In addition to that, the European Union (EU) threatened to escalate the Brexit clash if the UK quits the Northern Ireland deal. Nevertheless, the sterling gains on improved risk sentiment. It is worth noting that, S&P 500 Futures are trading at 4,453, up 0.34% on the day

As for now, traders keep their focus on the US Retail Sales data and Michigan Consumer Sentiment Index to gauge market sentiment.

GBP/USD technical levels

GBP/USD

Overview
Today last price 1.3679
Today Daily Change 0.0006
Today Daily Change % 0.04
Today daily open 1.3673
 
Trends
Daily SMA20 1.3617
Daily SMA50 1.3721
Daily SMA100 1.3824
Daily SMA200 1.3845
 
Levels
Previous Daily High 1.3735
Previous Daily Low 1.3656
Previous Weekly High 1.3659
Previous Weekly Low 1.3532
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3705
Daily Fibonacci 61.8% 1.3686
Daily Pivot Point S1 1.3641
Daily Pivot Point S2 1.3609
Daily Pivot Point S3 1.3562
Daily Pivot Point R1 1.372
Daily Pivot Point R2 1.3767
Daily Pivot Point R3 1.3799

 


 

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