GBP/USD pares intraday losses, down little around mid-1.3700s

  • GBP/USD attracted some dip-buying on Friday amid a subdued USD price action.
  • The risk-on impulse in the markets acted as a headwind for the safe-haven USD.
  • Rallying US bond yields underpinned the USD and capped the upside for the pair.

The GBP/USD pair remained on the defensive through the early North American session, albeit has managed to rebound around 30 pips from daily lows and was last seen trading around mid-1.3700s.

The pair attracted some dip-buying near the 1.3920 region and is now looking to build on this week's strong rebound from sub-1.3600 levels, or the lowest level since February. As investors looked past mixed US macro releases, a subdued US dollar price action was seen as a key factor that extended some support to the GBP/USD pair.

Data released earlier this Friday showed that the headline UK Retail Sales recorded a growth of 0.5% in June as compared to 0.4% expected. This, however, was offset by a slight disappointment from sales tripping the auto motor fuel, which increased a modest 0.3% during the reported month as against consensus estimates for a 0.6% rise.

Separately, the closely watched report from IHS Markit showed that business activity in the UK manufacturing and services sector slowed significantly in July. The data fueled concerns about the pace of the economic recovery from the pandemic amid the resurgence of cases in the UK and acted as a headwind for the British pound.

Meanwhile, investors now seemed to have set aside worries about the fast-spreading Delta variant of the coronavirus. This was evident from a generally positive tone around the equity markets. The risk-on impulse undermined the safe-haven greenback and assisted the GBP/USD pair to find decent support near the 1.3720 area.

That said, a strong intraday pickup in the US Treasury bond yields helped limit any deeper losses for the USD and capped gains for the GBP/USD pair. The USD moved little following the release of better-than-expected US flash Manufacturing PMI, which was largely negated by an unexpectedly sharp fall in the gauge for the services sector.

It will now be interesting to see if the GBP/USD pair is able to capitalize on the attempted recovery move or continues with its struggle to move back above the 1.3800 mark. Nevertheless, the pair remains on track to end nearly unchanged for the week.

Technical levels to watch


Today last price 1.3758
Today Daily Change -0.0009
Today Daily Change % -0.07
Today daily open 1.3767
Daily SMA20 1.3805
Daily SMA50 1.398
Daily SMA100 1.3926
Daily SMA200 1.371
Previous Daily High 1.3787
Previous Daily Low 1.3691
Previous Weekly High 1.391
Previous Weekly Low 1.3761
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.3751
Daily Fibonacci 61.8% 1.3728
Daily Pivot Point S1 1.371
Daily Pivot Point S2 1.3652
Daily Pivot Point S3 1.3613
Daily Pivot Point R1 1.3806
Daily Pivot Point R2 1.3845
Daily Pivot Point R3 1.3903



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD stays pressured as shares slump on Powell's hawkish rhetoric

EUR/USD bears stay in control as Asian shares take a plunge. The Fed's hawkishness is reverberating throughout global markets, weighing on risk-sensitive currencies. The US dollar is bid in Asia and risk aversion remains in play.


GBP/USD refreshes monthly low under 1.3450 as Fed, Brexit and UK politics favor bears

GBP/USD takes offers to renew monthly low, down for the second consecutive day. EU to sue UK over deal in bonkers, delay in Brexit talks over NI. Sue Grey's report awaited as UK PM Johnson defends drinks party, animal evacuation from Afghanistan adds to the problems.


Gold bears await US Q4 GDP for the next leg lower Premium

Gold price is licking its wounds near weekly lows of $1,813, as bears take a breather in the aftermath of the Fed decision while waiting for the US advance Q4 GDP and Durable goods data. The US economy is likely to have regained steam in Q4, 2021.

Gold News

Why Bitcoin price could form a bottom following the January 28 options expiry

Bitcoin open interest volume by expiry date indicates a majority of bearish sentiment in the market. BTC options worth roughly $2 billion will expire by the end of this week. However, options expiry has correlated with massive liquidations and price crashes in the past.

Read more

US GDP Preview: Inflation component could steal the show, boost dollar. Premium

More than double than pre-pandemic – the 5% annualized growth rate expected for the fourth quarter is a reason to be cheerful. That may boost the dollar, but not stocks, which are wary of tighter monetary policy from the Fed.

Read more