GBP/USD loses the 1.22 handle to close out Friday trading


  • The GBP/USD initially rose on Friday, but got knocked lower as the market broadly swept back into the US Dollar.
  • The US Dollar index caught a late bid to push back into the middle to close out the trading week.
  • Recession risk is still quite high in the UK, capping Pound Sterling bids.

The GBP/USD sank just south of the 1.2200 handle heading into the Friday market close, and the pair finds itself still struggling under the weight of a heavy bearish trend.

Inflation continues to be a hot topic for the Bank of England (BoE), and the UK may have no choice but to continue facing down high interest rates. With prices continuing to grow above the BoE's target, interest rate cuts remain a far-off dream for market investors hoping to get their borrowing and funding costs eased.

UK labor conditions continue to deteriorate, and the manufacturing outlook remains pessimistic looking forward.

Next week the UK will see Manufacturing Purchasing Manager Index (PMI) figures for September; the PMI data is broadly expected to show continued deterioration in economic expectations.

The US Dollar (USD) is set to remain well-bid through next week's trading window. An impending US government shutdown is seeing the Greenback bolstered across the broader market, and a government shutdown could see next week's Non-Farm Payrolls delayed.

Read More:

Forex Today: Another positive week for the Dollar

Pound Sterling fails to hold recovery as US Dollar recovers

GBP/USD technical outlook

The Sterling got rejected from the 200-hour Simple Moving Average after peaking at an intraday high of 1.2270 on Friday, sending the pair into a fresh low of 1.2180 for the day.

The GBP/USD is currently pinned to the midpoint at the 34-hour Exponential Moving Average (EMA) as intraday momentum bleeds out, and the midweek's bounce from a near-term low if 1.2110 looks set to run out of steam.

Daily candlesticks have the GBP/USD deeply off the beaten path, tumbling away from the 200-day SMA currently parked just above 1.2400, and the pair is set to continue charging into fresh six-month lows is selling pressure keeps up.

A descending 34-day EMA is providing dynamic resistance for any potential bullish pullbacks, and is currently priced in at the 200-day SMA, looking for a bearish crossover.

GBP/USD daily chart

GBP/USD technical levels

GBP/USD

Overview
Today last price 1.2199
Today Daily Change -0.0001
Today Daily Change % -0.01
Today daily open 1.22
 
Trends
Daily SMA20 1.2394
Daily SMA50 1.2602
Daily SMA100 1.2626
Daily SMA200 1.2435
 
Levels
Previous Daily High 1.2225
Previous Daily Low 1.212
Previous Weekly High 1.2425
Previous Weekly Low 1.2231
Previous Monthly High 1.2841
Previous Monthly Low 1.2548
Daily Fibonacci 38.2% 1.2185
Daily Fibonacci 61.8% 1.216
Daily Pivot Point S1 1.2139
Daily Pivot Point S2 1.2077
Daily Pivot Point S3 1.2034
Daily Pivot Point R1 1.2243
Daily Pivot Point R2 1.2286
Daily Pivot Point R3 1.2348

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD keeps its range above 1.0850 amid risk-off mood

EUR/USD keeps its range above 1.0850 amid risk-off mood

EUR/USD is oscillating in a tight range above 1.0850 in the European session on Tuesday. The pair stays cautious due to risk-off sentiment and a modest US Dollar uptick, as investors weigh the ECB and Fed rate cut expectations. The focus now remains on speeches from Fed officials. 

EUR/USD News

GBP/USD holds gains above 1.2700, awaits fresh catalysts

GBP/USD holds gains above 1.2700, awaits fresh catalysts

GBP/USD holds small gains above 1.2700 in European trading on Tuesday. Investors await fresh catalysts, with several Federal Reserve speakers and BoE Governor Andrew set to speak. Tuesday's Fedspeak weighed on rate cut expectations and fuelled a fresh US Dollar advance. 

GBP/USD News

Gold pulls back after touching a new all-time high

Gold pulls back after touching a new all-time high

Gold price (XAU/USD) retreats to the $2,410s on Tuesday as commentary from central bank policymakers around the globe reveals a reluctance to commit to lowering interest rates. 

Gold News

Shiba Inu price flashes buy signal, 25% rally likely Premium

Shiba Inu price flashes buy signal, 25% rally likely

Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.

Read more

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out Premium

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out

Sell in May and go away? That market adage seems outdated in the face of new highs for stocks and Gold. Optimism depends on the easing from central banks – and some clues are due this week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures