GBP/USD hits a fresh daily high above 1.3150 on end-of-month flows

Cable rises to fresh highs but fails to hold firm above 1.3150.
US dollar remains weak after yesterday’s FOMC meeting.

Matías Salord FXStreet

The GBP/USD pair rose from 1.3105 to 1.3159, the new daily highs. Then pulled back as it was unable to extend the run on top of 1.3160. The move to the upside took place on the back of the London-fix that triggered soma volatility across the market. While the pound and the Swiss franc rose, the euro weakened.

The London fix at the end of the month added pressure to the greenback and the euro. The US dollar continues to the among the weakest currencies after the FOMC meeting. The US central bank kept rates unchanged as expected but took a more dovish stance, reducing the demand for the greenback.

In the UK, Brexit continues to be the key event. Meetings between UK PM May and members of the Parliament are taking place today. The date to leave the European Union is in 57 days. The parliament's week-long recess in February has been canceled.

GBP/USD Levels to watch

Cable is moving with a modest bullish bias, trading at 1.3140/45, up for the second day in a row. A firm break above 1.3150/60 could clear the way for a test of the next resistance seen around 1.3190 and then 1.3215 (Jan 25 high). On the flip side, a slide below 1.3125 (20-hour moving average) would expose the daily low at 1.3095. If the decline continues, a strong support emerges at 1.3050/55 (Jan 29 & 30 low).

GBP/USD

Overview:
    Today Last Price: 1.3147
    Today Daily change: 0.0044 pips
    Today Daily change %: 0.34%
    Today Daily Open: 1.3103
Trends:
    Daily SMA20: 1.2914
    Daily SMA50: 1.2784
    Daily SMA100: 1.29
    Daily SMA200: 1.305
Levels:
    Previous Daily High: 1.3146
    Previous Daily Low: 1.3054
    Previous Weekly High: 1.3214
    Previous Weekly Low: 1.283
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Daily Fibonacci 38.2%: 1.3111
    Daily Fibonacci 61.8%: 1.3089
    Daily Pivot Point S1: 1.3056
    Daily Pivot Point S2: 1.3009
    Daily Pivot Point S3: 1.2965
    Daily Pivot Point R1: 1.3148
    Daily Pivot Point R2: 1.3193
    Daily Pivot Point R3: 1.324

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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