GBP/USD plummets to multi-month lows below 1.28 on UK politics, USD strength


  • UK PM May is expected to present the timetable for her departure. 
  • US Dollar Index climbs above 97.70.
  • The 10-year US T-bond yield gains nearly 1% on Thursday.

The GBP/USD pair came under a renewed bearish pressure in the last hour and slumped below the 1.28 mark for the first time since February 14. As of writing, the pair was trading at 1.2795, losing 0.42% on a daily basis.

Earlier today, reports of British Prime Minister Theresa May meeting with the 1922 Committee to present the timetable for her departure weighed on the British pound. Furthermore, opposition Labour Party Brexit spokesman Starmer told reporters that his party will vote against the UK PM May’s withdrawal agreement bill unless they were able to make a deal with the government before the vote to make it difficult for the currency to stay resilient against its rivals.

On the other hand, the decisive rebound witnessed in the 10-year US T-bond yield amid a lack of headlines surrounding the U.S.-China trade conflict seems to be helping the greenback gather strength on Thursday. At the moment, the DXY is up 0.14% on a daily basis at 97.70.

Today's data from the U.S. showed that weekly jobless claims fell to 212K in the week ending May 10 and came in better than the market expectation of 220K. Additionally, housing starts and building permits increased by 5.7% and 0.6%, respectively, on a monthly basis in April.

Technical levels to consider

GBP/USD

Overview
Today last price 1.2799
Today Daily Change -0.0049
Today Daily Change % -0.38
Today daily open 1.2848
 
Trends
Daily SMA20 1.2986
Daily SMA50 1.3073
Daily SMA100 1.3015
Daily SMA200 1.2958
Levels
Previous Daily High 1.2924
Previous Daily Low 1.2826
Previous Weekly High 1.3171
Previous Weekly Low 1.2967
Previous Monthly High 1.3196
Previous Monthly Low 1.2865
Daily Fibonacci 38.2% 1.2863
Daily Fibonacci 61.8% 1.2886
Daily Pivot Point S1 1.2808
Daily Pivot Point S2 1.2768
Daily Pivot Point S3 1.2711
Daily Pivot Point R1 1.2906
Daily Pivot Point R2 1.2963
Daily Pivot Point R3 1.3003

 

 

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