GBP/USD once again finds support near 1.2100 mark, turns neutral post-UK services PMI

  • The ongoing slump in the US bond yields undermined the USD and helped limit early dip.
  • Upbeat UK services PMI for July provided a minor boost during the early European session.
  • Persistent fears of a no-deal Brexit might continue to keep a lid on any meaningful bounce.

The GBP/USD pair quickly reversed an early dip to the 1.2100 neighbourhood and rallied around 35-pips on upbeat UK macro data, albeit lacked any strong follow-through.
A follow-through US Dollar pullback - led the ongoing freefall in the US Treasury bond yields amid the global flight to safety, helped the pair to stall its intraday downfall and once again find some support near the mentioned handle. With investors looking past last week's hawkish rate cut by the Fed, the US President Donald Trump's unexpected announcement on Thursday to slap 10% tariffs on additional $300 billion worth of Chinese goods rattled global financial markets and triggered a fresh wave of global risk-aversion trade.
Meanwhile, the British Pound got an additional boost during the early European session on Monday following the release of stronger-than-expected UK services PMI, which edged up to a nine-month high level of 51.4 in July as compared to a steady reading of 50.2 expected, albeit increasing odds of a no-deal Brexit might hold the bulls on the defensive and keep a lid on any runaway rally, at least for the time being.
It is worth mentioning that The Sunday Telegraph had quoted the UK PM Boris Johnson's senior adviser - Dominic Cummings, saying lawmakers will not be able to stop a no-deal Brexit by bringing a vote of no confidence, which did little to ease market concerns that the UK will eventually crash out of the EU on October 31 and might continue to dent the broader market sentiment surrounding the Sterling.
Apart from the incoming Brexit-related headlines, traders on Monday will further take cues from the release of the US ISM non-manufacturing PMI, which might influence the USD price dynamics and produce some short-term opportunities later during the early North-American session.

Technical levels to watch


Today last price 1.2133
Today Daily Change -0.0031
Today Daily Change % -0.25
Today daily open 1.2164
Daily SMA20 1.2402
Daily SMA50 1.2553
Daily SMA100 1.2781
Daily SMA200 1.284
Previous Daily High 1.2171
Previous Daily Low 1.209
Previous Weekly High 1.2384
Previous Weekly Low 1.208
Previous Monthly High 1.2706
Previous Monthly Low 1.2119
Daily Fibonacci 38.2% 1.214
Daily Fibonacci 61.8% 1.2121
Daily Pivot Point S1 1.2112
Daily Pivot Point S2 1.206
Daily Pivot Point S3 1.2031
Daily Pivot Point R1 1.2193
Daily Pivot Point R2 1.2222
Daily Pivot Point R3 1.2274



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