GBP/USD inches closer to 1.3800 amid weaker USD, Brexit headlines


  • GBP/USD edges higher on Monday in the European trading hours.
  • The US dollar remains subdued following lower US Treasury yields, ebbing inflation fears.
  • Upbeat data, Brexit headlines, and hawkish BOE fuel gains in the sterling.

GBP/USD remains firm on the first trading day of the week in the early European session. The pair managed to gather momentum following the previous two session’s fall-off . At the time of writing, GBP/USD is trading at 1.3780, up 0.19% for the day.

The sterling keeps its foot firmly against the majors amidst the expectations that the Bank of England (BOE) will be probably the first major central bank to raise interest rates in the post-pandemic cycle but economists warned that markets are already pricing the early rate hikes.

The Brexit-led optimism uplifts the sentiment surrounding the sterling, in light of the positive comments from the UK government on the Northern Ireland (NI) protocol. Meanwhile, the IHS Markit/CIPS UK Composite PMI jumped to 56.8 in October, beating the market expectations of 54.0.
 
The greenback edges lower on Monday, following the Fed Chair Jerome Powell’s comment that the US central bank is ready to start tapering but remained tight-lipped on the timeline to raise interest rate hikes. Investors took remarks as a signal that the other major central banks may hike rates sooner than the Fed.
 
As for now, traders keep their focus on the Bank of England’s(BoE) Tenreyro's speech to gauge market sentiment.

GBP/USD technical levels

GBP/USD

Overview
Today last price 1.3781
Today Daily Change 0.0026
Today Daily Change % 0.19
Today daily open 1.3755
 
Trends
Daily SMA20 1.3645
Daily SMA50 1.3712
Daily SMA100 1.38
Daily SMA200 1.385
 
Levels
Previous Daily High 1.3815
Previous Daily Low 1.3736
Previous Weekly High 1.3834
Previous Weekly Low 1.3709
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3766
Daily Fibonacci 61.8% 1.3785
Daily Pivot Point S1 1.3722
Daily Pivot Point S2 1.369
Daily Pivot Point S3 1.3644
Daily Pivot Point R1 1.3801
Daily Pivot Point R2 1.3848
Daily Pivot Point R3 1.388

 

 

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