GBP/USD flirts with daily low, just above 1.3400 mark


  • GBP/USD witnessed some selling for the second successive day on Monday.
  • Brexit woes acted as a headwind for the sterling amid sustained USD buying.
  • Fed rate hike bets, COVID-19 jitters held the USD near a multi-month peak.

The GBP/USD pair edged lower through the early part of the European session and dropped to a fresh daily low, around the 1.3420 region in the last hour.

The pair struggled to capitalize on Friday's modest bounce from the vicinity of the 1.3400 round figure, instead met with fresh supply on the first day of a new week. This marked the second successive day of a negative move and was sponsored by a combination of factors.

The deadlock over the post-Brexit arrangement in Northern Ireland and fishing rights overshadowed the prospects for an imminent interest rate hike by the Bank of England in December. This, in turn, continued acting as a headwind for the British pound amid sustained US dollar buying.

The key USD Index stood tall near multi-month highs amid growing acceptance that the Fed would be forced to adopt a more aggressive policy response to contain stubbornly high inflation. This was reinforced by elevated US Treasury bond yields, which continued underpinning the USD.

Apart from this, worries about surging COVID-19 cases further benefitted the greenback's relative safe-haven status and exerted some downward pressure on the GBP/USD pair. That said, the lack of any strong follow-through selling warrants some caution for aggressive bearish traders.

There isn't any major market-moving UK macro data due for release on Monday, while the US economic docket features the release of Existing Home Sales. Hence, the focus will remain on Brexit-related developments, which will influence the GBP and provide some impetus to the GBP/USD pair.

On the other hand, the US bond yields will drive the USD demand. This, along with the broader market risk sentiment should allow traders to grab some short-term opportunities around the GBP/USD pair.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3422
Today Daily Change -0.0021
Today Daily Change % -0.16
Today daily open 1.3443
 
Trends
Daily SMA20 1.3565
Daily SMA50 1.3631
Daily SMA100 1.3719
Daily SMA200 1.3835
 
Levels
Previous Daily High 1.351
Previous Daily Low 1.3408
Previous Weekly High 1.3514
Previous Weekly Low 1.3396
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3447
Daily Fibonacci 61.8% 1.3471
Daily Pivot Point S1 1.3397
Daily Pivot Point S2 1.3351
Daily Pivot Point S3 1.3295
Daily Pivot Point R1 1.35
Daily Pivot Point R2 1.3556
Daily Pivot Point R3 1.3602

 

 

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: Bulls step in at month-end, eyeing the upside

EUR/USD is set to close off a bearish week towards a test of 1.11 the figure after breaking out of the bearish weekly wedge to the downside. Bulls have an eye on the weekly M-formation and prospects of a significant correction. 

EUR/USD News

GBP/USD slumps toward 1.3350, renews five-week lows

GBP/USD stays under constant bearish pressure on Thursday and trades at its lowest level since late December below 1.3370. Following the upbeat growth data from the US, the US Dollar Index is rising more than 0.7% on the day above 97.00. 

GBP/USD News

Gold licks wounds at three-week low near $1,800 amid firmer USD

Gold bears take a breather around $1,797 as Friday’s Asian session begins, following a $50 slump in the last two consecutive days to a three-week low. The yellow metal awaits fresh clues after piercing the $1,800 threshold the previous day.

Gold News

Bitcoin struggles against resistance as bulls keep their eye on $40,000

Bitcoin price action faced intense selling pressure after the Fed’s decision, with Bitcoin losing more than 5% from its Wednesday high. If the sell-off from the top wasn’t discouraging enough for bulls, then the daily close in the red certainly added insult to injury.

Read more

Apple (AAPL) Earnings for Q1 beats estimates on EPS and revenue

Apple (AAPL) reported earnings after the close on Thursday. Earnings per share (EPS) came in at $2.10 versus the estimate of $1.89. Revenue was $123.9 billion versus the estimate for $118.66 billion. AAPL is trading at $162.40 in Thursday's aftermarket, a change of 2% versus the regular session close of $159.16.

Read more

Forex MAJORS

Cryptocurrencies

Signatures