GBP/USD looks south towards 1.3800 amid renewed Brexit woes, USD strength

  • GBP/USD under pressure amid USD strength, Brexit concerns.
  • UK political woes and covid concerns also weigh on the cable.
  • Data-light calendar keeps DXY price action in focus.

The selling pressure around GBP/USD remains unabated, as the bears seek a test of the 1.3800 level amid resurfacing Brexit concerns and persistent US dollar’s strength.

The greenback continues to draw bids alongside the Treasury yields amid expectations of an earlier tapering by the Fed, in light of Friday’s stronger than expected US Nonfarm Payrolls (NFP) data.

The US economy seems to be closing in on the Fed’s ‘substantial progress’ benchmark, calling for monetary policy normalization sooner than previously thought. Adding to the hawkish bets, Fed officials Rosengren and Bostic also back early taper.

On the other side of the Atlantic, Brexit concerns have returned to the table amid the migrant crisis.  The former Brexit Party leader Nigel Farage slammed France and the EU for failing to “lift a finger” to prevent the dangerous cross-channel migrant crisis.

Meanwhile, the UK political worries over PM Boris Johnson looking to demote Finance Minister Rishi Sunak also adds to the weight on the pound.

Looking forward, the US dollar price action and Brexit updates will continue to influence the pair amid a data-light calendar. Traders also await the US Senate vote on the infrastructure bill. The focus, however, this week remains on the UK Preliminary Q2 GDP and US CPI data.

GBP/USD technical levels to watch


Today last price 1.3838
Today Daily Change -0.0007
Today Daily Change % -0.05
Today daily open 1.3847
Daily SMA20 1.383
Daily SMA50 1.3913
Daily SMA100 1.3923
Daily SMA200 1.3763
Previous Daily High 1.3894
Previous Daily Low 1.3841
Previous Weekly High 1.3958
Previous Weekly Low 1.3861
Previous Monthly High 1.3984
Previous Monthly Low 1.3572
Daily Fibonacci 38.2% 1.3861
Daily Fibonacci 61.8% 1.3874
Daily Pivot Point S1 1.3827
Daily Pivot Point S2 1.3807
Daily Pivot Point S3 1.3773
Daily Pivot Point R1 1.3881
Daily Pivot Point R2 1.3914
Daily Pivot Point R3 1.3934



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