GBP/USD hits fresh session lows, 1.2500 mark back on sight amid a modest USD uptick

The USD gains some traction in reaction to upbeat regional manufacturing index.
Brexit uncertainties/dovish BoE expectations continue to weigh on the Sterling.
The focus now shifts to Tuesday’s UK jobs report/US monthly retail sales figures.

Haresh Menghani FXStreet

The GBP/USD pair extended its steady intraday decline and dropped to fresh session lows, around the 1.2525 region during the early North-American session.

The pair failed to capitalize on last week's goodish bounce from six-month lows and started retreating from a resistance marked by the 1.2575-80 supply zone, with a modest pickup in the US Dollar demand exerting some additional downward pressure in the last hour.

The greenback ticked higher in reaction to stronger-than-expected Empire State Manufacturing Index, showing that business activity rebounded to 4.3 in July as compared to the previous month's negative reading of 8.6 - marking the lowest level of the index since October 2016.

The pair has now reversed a major part of Friday's positive move to 1-week tops to snap three consecutive days of winning and was further pressurized by persistent Brexit-related uncertainties and speculations that the BoE will soon join other major central banks in easing monetary policy.

It would now be interesting to see if the pair is able to defend the key 1.2500 psychological mark as the focus now shifts to Tuesday's important releases of UK jobs report and the closely watched US monthly retail sales figures ahead of the Fed Chair Jerome Powell's scheduled speech.

Technical levels to watch

GBP/USD

Overview
Today last price	1.2532
Today Daily Change	-0.0040
Today Daily Change %	-0.32
Today daily open	1.2572

Trends
Daily SMA20	1.2675
Daily SMA50	1.2782
Daily SMA100	1.2942
Daily SMA200	1.2915

Levels
Previous Daily High	1.258
Previous Daily Low	1.2518
Previous Weekly High	1.258
Previous Weekly Low	1.244
Previous Monthly High	1.2784
Previous Monthly Low	1.2506
Daily Fibonacci 38.2%	1.2556
Daily Fibonacci 61.8%	1.2541
Daily Pivot Point S1	1.2533
Daily Pivot Point S2	1.2494
Daily Pivot Point S3	1.247
Daily Pivot Point R1	1.2595
Daily Pivot Point R2	1.2619
Daily Pivot Point R3	1.2658

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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