GBP/USD holds steady near weekly tops, just below mid-1.3900s


  • GBP/USD gained some follow-through traction for the second straight session on Wednesday.
  • A combination of factors acted as a tailwind for the British pound and remained supportive.
  • Investors look forward to the US macro data for some impetus ahead of the BoE on Thursday.

The GBP/USD pair maintained its bid tone through the first half of the European session and was last seen trading near weekly tops, just below mid-1.3900s.

The pair built on the previous day's rebound from the 1.3875 support area and gained some follow-through traction for the second consecutive session on Wednesday. The British pound remained well supported by the optimism over the declining trend of new COVID-19 cases in the UK. Bulls further took cues from an upward revision of the UK Services PMI for July.

The data provided further evidence of a more robust UK economic recovery, which has been fueling speculations about a possible hawkish shift from the Bank of England. This comes on the back of the European Union's decision to pause legal proceedings against the UK over the Northern Ireland protocol dispute, which further acted as a tailwind for the sterling.

On the other hand, the US dollar, so far, has struggled to attract any meaningful buying amid expectations that the Fed will stick to its ultra-lose policy stance for a longer period. That said, concerns about the fast-spreading Delta variant of the coronavirus and a modest uptick in the US Treasury bond yields helped limit any deeper losses for the USD.

Investors might also be reluctant to place any aggressive bets, rather prefer to wait on the sidelines ahead of the upcoming BoE monetary policy meeting on Thursday. The key focus will be on the BoE's inflation outlook, which, in turn, will play a key role in influencing the GBP price dynamics in the near term and provide a fresh directional impetus to the GBP/USD pair.

In the meantime, Wednesday's US economic docket, highlighting the releases of the ADP report on private-sector employment and ISM Services PMI will be looked upon for some impetus. Apart from this, the US bond yields and the broader market risk sentiment will drive the greenback, allowing traders to grab some short-term opportunities around the GBP/USD pair.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3938
Today Daily Change 0.0023
Today Daily Change % 0.17
Today daily open 1.3915
 
Trends
Daily SMA20 1.3822
Daily SMA50 1.3937
Daily SMA100 1.3924
Daily SMA200 1.3744
 
Levels
Previous Daily High 1.3939
Previous Daily Low 1.3882
Previous Weekly High 1.3984
Previous Weekly Low 1.3737
Previous Monthly High 1.3984
Previous Monthly Low 1.3572
Daily Fibonacci 38.2% 1.3917
Daily Fibonacci 61.8% 1.3903
Daily Pivot Point S1 1.3885
Daily Pivot Point S2 1.3855
Daily Pivot Point S3 1.3828
Daily Pivot Point R1 1.3942
Daily Pivot Point R2 1.3969
Daily Pivot Point R3 1.3999

 

 

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