- US dollar recovers momentums as US yields rise and equity prices retreat.
- Pound’s negative tone is incrementing ahead of Brexit deal debate at Parliament.
Cable weakened during the American session and fell to 1.2709, hitting a fresh daily low. Then bounced modestly to the upside to 1.2730. The move to the downside took place on the back of a recovery of the US dollar across the board.
The DXY rose from 2-month lows and now is attempting to rise back above 96.00. The improvement in risk appetite weakened the US dollar early on Tuesday. Optimism about the China-US trade talks supported the positive sentiment. US president Trump tweeted today that “talks are going very well.” Today at 9 PM ET he will deliver a speech from the White House on the Southern border.
The pound also hit a fresh low versus the euro at the time GBP/USD bottomed. Uncertainties about the Brexit deal vote at the Parliament next week and its potential consequences are a negative influence for the pound at the moment.
Technical levels to watch
Earlier today, GBP/USD approached 1.2800, but it was rejected like a week ago. Now cable is in negative territory for the day, trading at 1.2720, about to post the first slide after rising during three days in-a-row.
To the downside, support levels might be seen at 1.2700/10, 1.2675 and 1.2650. On the upside, 1.2750 is the immediate resistance followed by 1.2785 and then comes the 1.2800 zone. A consolidation on top of the 1.2800 area would clear the way to more gains.
GBP/USD
Overview:
Today Last Price: 1.2731
Today Daily change: -39 pips
Today Daily change %: -0.305%
Today Daily Open: 1.277
Trends:
Previous Daily SMA20: 1.2661
Previous Daily SMA50: 1.2773
Previous Daily SMA100: 1.2897
Previous Daily SMA200: 1.3149
Levels:
Previous Daily High: 1.2788
Previous Daily Low: 1.2707
Previous Weekly High: 1.2815
Previous Weekly Low: 1.2438
Previous Monthly High: 1.284
Previous Monthly Low: 1.2477
Previous Daily Fibonacci 38.2%: 1.2757
Previous Daily Fibonacci 61.8%: 1.2738
Previous Daily Pivot Point S1: 1.2722
Previous Daily Pivot Point S2: 1.2674
Previous Daily Pivot Point S3: 1.2642
Previous Daily Pivot Point R1: 1.2803
Previous Daily Pivot Point R2: 1.2835
Previous Daily Pivot Point R3: 1.2883
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