GBP/USD holds comfortably above 1.2500 mark ahead of US PPI/Fedspeak


  • The USD finds some support amid recovering US bond yields and capped gains.
  • No-deal Brexit fears/dovish BoE expectations hold investors from buying the GBP.
  • Traders now eye the US PPI print for June and Fedspeak for short-term impetus.

The GBP/USD pair retreated around 30-pips from the early European session swing high and is currently placed at the lower end of its daily trading range, around the 1.2525-30 region.

Against the backdrop of Thursday's hotter-than-expected US core CPI print, a follow-through pickup in the US Treasury bond yields helped limit the intraday US Dollar downtick on Friday and kept a lid on the pair's attempted up-move to levels just above mid-1.2500s.

Meanwhile, speculations that the Bank of England might join other major central bank and ease monetary policy was further reinforced by the BoE's external MPC member Gertjan Vlieghe, which coupled with persistent fears of a no-deal Brexit further collaborated towards capping gains.

The pullback, however, remained limited, at least for the time being as investors refrain from placing any aggressive bets amid UK political, economic and Brexit uncertainties - especially after the European Commission Chief nominee closed the door for renegotiating the withdrawal agreement. 

Moving ahead, Friday's US economic docket - featuring the release of PPI figures for June, coupled with comments by Chicago Fed President Charles Evans will now be looked upon for some short-term trading opportunities on the last day of the week.

Technical levels to watch

GBP/USD

Overview
Today last price 1.253
Today Daily Change 0.0009
Today Daily Change % 0.07
Today daily open 1.2521
 
Trends
Daily SMA20 1.2609
Daily SMA50 1.2714
Daily SMA100 1.291
Daily SMA200 1.2894
Levels
Previous Daily High 1.2572
Previous Daily Low 1.2489
Previous Weekly High 1.2706
Previous Weekly Low 1.2481
Previous Monthly High 1.2784
Previous Monthly Low 1.2506
Daily Fibonacci 38.2% 1.254
Daily Fibonacci 61.8% 1.2521
Daily Pivot Point S1 1.2482
Daily Pivot Point S2 1.2444
Daily Pivot Point S3 1.24
Daily Pivot Point R1 1.2565
Daily Pivot Point R2 1.261
Daily Pivot Point R3 1.2648

 

 

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