GBP/USD off the lows, looks to regain 1.3650 ahead of US data, Powell

  • GBP/USD picks up fresh bids amid risk-on mood.
  • DXY and Treasury yields bounce to cap cable’s upside.
  • Eyes on US data, Powell and Biden’s speech amid UK covid updates.

Fresh bids emerged once again near the 1.3615 region, allowing a bounce in GBP/USD back towards 1.3650 ahead of the European session.

Despite the quick pullback, the bulls remain cautious ahead of the critical US weekly jobless claims data and a scheduled speech by the Fed Chair Jerome Powell. Investors will watch out for any hints on tapering amidst ongoing chatter over the taper talks, although many of the Fed officials dismissed the chances of tapering.

The main event risk for the USD traders will likely remain President-elect Joe Biden’s expected $2 trillion stimulus package, the report of which triggered a rebound in the US dollar and the Treasury yields in the last hours. The stimulus package in the offer is expected to be $700 billion higher than the $1.3 trillion proposed by Senator Chuck Schumer. 

On the GBP-side of the story, ramping up of the vaccinations and stricter restrictions on international arrivals in the UK to curb the virus spread is likely to keep the sentiment around the pound underpinned. Prime Minister Boris Johnson said tougher restrictions brought in last week were starting to have an effect on the spread of COVID in some parts of the country.

Looking ahead, the major will remain at the mercy of the dollar trades and sentiment around the Treasury yields amid expectations of a bigger stimulus and ahead of the key US data, Powell’s and Biden’s speech.

GBP/USD technical levels


Today last price 1.3640
Today Daily Change 0.0011
Today Daily Change % 0.08
Today daily open 1.363
Daily SMA20 1.3556
Daily SMA50 1.3406
Daily SMA100 1.3197
Daily SMA200 1.2902
Previous Daily High 1.3701
Previous Daily Low 1.3612
Previous Weekly High 1.3704
Previous Weekly Low 1.3532
Previous Monthly High 1.3686
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3646
Daily Fibonacci 61.8% 1.3667
Daily Pivot Point S1 1.3594
Daily Pivot Point S2 1.3559
Daily Pivot Point S3 1.3505
Daily Pivot Point R1 1.3683
Daily Pivot Point R2 1.3737
Daily Pivot Point R3 1.3772



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