GBP/USD keeps the red near multi-day lows, below mid-1.3600s post-UK jobs report


  • The downbeat market mood benefitted the safe-haven USD and exerted pressure on GBP/USD.
  • Upbeat UK employment details did little to impress GBP bulls or provide any meaningful impetus.

The GBP/USD pair remained depressed below mid-1.3600s, or near multi-day lows and had a rather muted reaction to upbeat UK employment details.

Following the previous day's two-way price moves, the pair met with some fresh supply on Tuesday and retreated further from 32-month tops, around the 1.3745 region touched last week. A weaker tone around the equity markets drove some haven flows towards the US dollar and was seen as a key factor exerting pressure on the GBP/USD pair.

The global risk sentiment took a hit after German data added to worries about the economic fallout from the coronavirus pandemic. Apart from this, concerns about roadblocks to the US President Joe Biden's $1.9 trillion stimulus plan. Adding to this, escalating US-China tensions in the South China Sea further weighed on investors' sentiment.

On the other hand, the British pound failed to gain any respite following the release of upbeat UK jobs report. In fact, the number of people claiming unemployment-related benefits declined to 7K in December as against consensus estimates pointing to a fall to 35K from the previous month's downwardly revised reading of 38.1K

Meanwhile, the UK unemployment rate edged high to 5.0% from 4.9% but was still better than a rise to 5.1% anticipated. The data, however, did little to impress the GBP bulls or provide any meaningful impetus to the GBP/USD pair. This, in turn, leaves the pair at the mercy of the broader market risk sentiment and the USD price dynamics.

Hence, the market focus will remain on this week's key US event/data risk. The FOMC is scheduled to announce its monetary policy decision on Wednesday. This will be followed by the release of the Advance US Q4 GDP report. This, along with the US stimulus headlines, will drive the USD in the near-term and provide a fresh directional impetus to the GBP/USD pair.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3639
Today Daily Change -0.0031
Today Daily Change % -0.23
Today daily open 1.367
 
Trends
Daily SMA20 1.3622
Daily SMA50 1.3482
Daily SMA100 1.3226
Daily SMA200 1.2949
 
Levels
Previous Daily High 1.3724
Previous Daily Low 1.3649
Previous Weekly High 1.3746
Previous Weekly Low 1.352
Previous Monthly High 1.3686
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3677
Daily Fibonacci 61.8% 1.3695
Daily Pivot Point S1 1.3638
Daily Pivot Point S2 1.3606
Daily Pivot Point S3 1.3563
Daily Pivot Point R1 1.3712
Daily Pivot Point R2 1.3755
Daily Pivot Point R3 1.3787

 

 

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


Latest Forex News

Editors’ Picks

EUR/USD hits six-week high amid risk-on mood

EUR/USD has risen above 1.22, hitting the highest since mid-January. The US Fed's commitment to easing has boosted the market mood and the safe-haven dollar is down despite higher US yields. A big bulk of US data including GDP awaits traders.

EUR/USD News

AUD/USD breaks through critical 0.8000 level, fresh three-year highs

AUD/USD rides the reflation wave higher. The aussie reaches the highest since February 2018. Surge in commodities complex underpins the AUD.

AUD/USD News

Gamestop (GME) Stock Price and Forecast: Soars 273% as “diamond hands” trigger meme stock comeback

NYSE: GME is trading at around $168 in Thursday's premarket trade, up 273% from Wednesday's early trading price. The departure of the CFO served as the trigger to the fresh buying frenzy. Retail traders that have held onto shares seem to be behind the surge.

Read more

Dogecoin on the verge of a 75% lift-off

Dogecoin price has been lull ever since the local top on February 7. However, a 20% surge due to Elon Musk’s recent endorsement has led to a breakout from a bull flag pattern. Now, the meme coin could surge 75% to record levels soon.

Read more

US Dollar Index looks depressed near 90.00 ahead of data

The US Dollar Index (DXY), which tracks the greenback vs. a bundle of its main rivals, remains under heavy pressure around the key 90.00 neighbourhood in the second half of the week.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures