GBP/USD looks to extend the corrective slide towards 1.2900

Bears taking back charge, as USD makes a comeback amid better risk tones.
200-DMA near 1.2970 – a tough nut to crack, UK CBI industrial orders in focus.

Dhwani Mehta FXStreet

The GBP/USD pair is seen breaking lower from its overnight consolidative range heading into the early European trading, as broad-based US dollar recovery gathers steam amid better risk tones.

The greenback is seen making a comeback against its main peers, tracking the recovery in the Treasury yields, as the risk sentiment improves on the hopes of Chinese stimulus and US-China trade resolution.

The spot continues to face stiff resistance at the 200-DMA located near 1.2970 levels. However, increased odds of a softer Brexit and the extension of Article 50 will continue to keep the sentiment around the Cable underpinned. Meanwhile, the latest upbeat UK jobs report, with stronger wage growth, brings the BOE rate hike back in play.

Looking ahead, a fresh risk-on wave in Europe could strengthen the USD recovery, which could fuel another leg down in the spot, extending the correction from three-day tops of 1.2976. Data-wise, markets will await the second-linier UK CBI industrial orders data while the speech from the BOE Deputy Governor Broadbent will be closely eyed.

GBP/USD Technical Levels

GBP/USD

Overview:
    Today Last Price: 1.2951
    Today Daily change: -0.0001 pips
    Today Daily change %: -0.01%
    Today Daily Open: 1.2952
Trends:
    Daily SMA20: 1.2785
    Daily SMA50: 1.2751
    Daily SMA100: 1.2892
    Daily SMA200: 1.3079
Levels:
    Previous Daily High: 1.2976
    Previous Daily Low: 1.2855
    Previous Weekly High: 1.3002
    Previous Weekly Low: 1.2668
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Daily Fibonacci 38.2%: 1.293
    Daily Fibonacci 61.8%: 1.2901
    Daily Pivot Point S1: 1.288
    Daily Pivot Point S2: 1.2807
    Daily Pivot Point S3: 1.2759
    Daily Pivot Point R1: 1.3001
    Daily Pivot Point R2: 1.3049
    Daily Pivot Point R3: 1.3122

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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