GBP/USD hits fresh lows but remains in a range, above 1.2300


  • Pound loses momentum during the American session, extends losses versus US Dollar, trims gains against Euro. 
  • Cable prints fresh daily lows but remains on top of 1.2300. 

The GBP/USD pair dropped to 1.2312 during the American session and as of writing is trading at 1.2325, modestly lower for the day, holding in a small range on a quiet day. Volatility remained lows favoring the continuation of the consolidation in GBP/USD. 

Since Friday’s US session the pair is moving between 1.2300 and 1.2380, consolidating the sharp rebound from level under 1.2000. A slide below 1.2300 would point to more weakness while on top of 1.2380 a visit to 1.2400 seems likely. 

Central banks on the radar 

Tomorrow, the European Central Bank will have its meeting. Many changes are expected so the event, including President Draghi press conference, could have a large impact on the currency market. 

Next week on Wednesday will be the turn of the Federal Reserve decision. A rate cut is expected. Analysts will look for signals about another rate cut before year-end. “US producer prices unexpectedly rose in August (0.1% MoM, 0.0% MoM expected, 0.2% MoM prior). However, better-than-expected producer prices did not change market expectations that the Fed will cut interest rates again next Wednesday. Moreover, U.S. President Trump added more pressure on the Fed to push down interest rates into negative territory,” explained BBVA analysts. 

In the UK, next Thursday, the Bank of England will announce its decision on monetary policy. Of the three central banks is the only one without expectations of new measures. “Brexit preparations resulted in volatile UK growth over the first half of the year, but the underlying trend is subdued and PMIs suggest that remained the case in Q3. Our forecast has been for persistent Brexit uncertainty to prompt a rate cut from the BoE. But 2% core inflation and 4% wage growth might keep the central bank on the sidelines”, said RBC economists. 

GBP/USD

Overview
Today last price 1.2323
Today Daily Change -0.0031
Today Daily Change % -0.25
Today daily open 1.2354
 
Trends
Daily SMA20 1.2202
Daily SMA50 1.229
Daily SMA100 1.2533
Daily SMA200 1.2747
Levels
Previous Daily High 1.238
Previous Daily Low 1.2306
Previous Weekly High 1.2354
Previous Weekly Low 1.1958
Previous Monthly High 1.231
Previous Monthly Low 1.2015
Daily Fibonacci 38.2% 1.2352
Daily Fibonacci 61.8% 1.2334
Daily Pivot Point S1 1.2314
Daily Pivot Point S2 1.2273
Daily Pivot Point S3 1.224
Daily Pivot Point R1 1.2388
Daily Pivot Point R2 1.2421
Daily Pivot Point R3 1.2462

 

 

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