GBP/USD holds steady above 1.2400 handle, lacks follow-through


  • Sliding US bond yields weighed on the USD and helped bounce off lows.
  • Persistent fears of a no-deal Brexit hold investors from buying the GBP.

The GBP/USD pair struggled to capitalize on its mid-European session bounce from fresh 27-month lows, albeit has managed to hold its neck above the 1.2400 handle.

Having touched an intraday low level of 1.2382 - the lowest since April 2017, the pair witnessed some short-covering move in the wake of a subdued US Dollar price action, albeit struggled to attract any strong buying interest amid persistent fears of a no-deal Brexit.

A fresh leg of a free fall in the US Treasury bond yields exerted some pressure on the greenback, which remained on the defensive following the disappointing release of US housing market data, and turned out to be one of the key factors behind the intraday rebound.

Apart from Brexit woes, tempered expectations of aggressive easing by the Fed when it announces its latest monetary policy decision at the end of a two-day meeting on July 30-31 further collaborated towards capping the pair's attempted recovery move. 

Hence, it would be prudent to wait for a strong follow-through before confirming that the pair might be in the process of forming a near-term bottom or positioning for any meaningful short-covering bounce back towards reclaiming the key 1.2500 psychological mark.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2412
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.2407
 
Trends
Daily SMA20 1.2599
Daily SMA50 1.2677
Daily SMA100 1.2891
Daily SMA200 1.2885
Levels
Previous Daily High 1.2522
Previous Daily Low 1.2396
Previous Weekly High 1.258
Previous Weekly Low 1.244
Previous Monthly High 1.2784
Previous Monthly Low 1.2506
Daily Fibonacci 38.2% 1.2444
Daily Fibonacci 61.8% 1.2474
Daily Pivot Point S1 1.2361
Daily Pivot Point S2 1.2316
Daily Pivot Point S3 1.2235
Daily Pivot Point R1 1.2487
Daily Pivot Point R2 1.2568
Daily Pivot Point R3 1.2613

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD is rising after upbeat German PMIs

EUR/USD is rising from the lows after Markit's preliminary PMIs for Germany came out above expectations, pointing to a recovery. Earlier, the euro struggled with the ECB's cautious message. President Lagarde speaks later.

EUR/USD News

GBP/USD holding its ground above 1.31 ahead of critical data

GBP/USD has been holding onto 1.31 as the US dollar retreats and ahead of Markit's preliminary PMIs, key figures that may determine the Bank of England's decision next week.

GBP/USD News

Forex Today: Markets take a break from coronavirus fears, forward-looking data eyed

Here is what you need to know on Friday, January 24: Coronavirus: While the number of cases continues rising and China canceled several New Year's cel
Read more

Gold: Portrays rising trend-channel on H4, Coronavirus in focus

Gold prices lack momentum while trading around $1,561.50 during early Friday. Even so, the bullion stays inside a short-term ascending trend-channel formation that portrays the strength of the underlying momentum.

Gold News

USD/JPY stuck in range around 109.50 amid China coronavirus concerns

USD/JPY sticks to its range play around the midpoint of the 109 handle amid rising fears of the Chinese coronavirus outbreak globally, upbeat Japanese CPI data and a minor bounce seen in the US dollar across the board. Focus shifts to US PMIs. 

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures