GBP/USD Price Analysis: Cable retreats from 32-month high as S&P 500 futures drop

GBP/USD recedes from session high to trade near 1.3730.
THe S&P 500 futures drop, drawing bids for the greenback.

Omkar Godbole FXStreet Contributor

GBP/USD has erased gains, with the US stock futures pointing to a weakening of risk sentiment.

The currency pair is currently trading mostly unchanged on the day near 1.3730, having printed a high of 1.3752 early Wednesday. That was the highest level since May 2018.

The pair has pulled back from 32-month highs, seemingly tracking the decline in the US stock futures. The S&P 500 futures, which were flat early today, are now down 0.30%, signaling renewed risk aversion and possibly drawing bids for the dollar.

However, GBP/USD's immediate technical bias remains bullish, as the higher lows and higher highs setup on the daily chart is still intact. Acceptance under Tuesday's low of 1.3609 would invalidate the higher lows setup and shift the attention to the 50-day Simple Moving Average (SMA), which restricted the downside two times in December. The 50-day SMA is currently located at 1.3483.

The pair jumped 0.43% on Tuesday, printing a higher low at 1.3690 as Biden administration's plans to boost vaccine supplies and the International Monetary Fund's upward revision of global growth forecasts boosted risk appetite and weighed over the anti-risk dollar.

Daily chart

Trend: Bearish below Tuesday's low

Technical levels

GBP/USD

Overview
Today last price	1.3731
Today Daily Change	-0.0009
Today Daily Change %	-0.07
Today daily open	1.374

Trends
Daily SMA20	1.3635
Daily SMA50	1.3492
Daily SMA100	1.3233
Daily SMA200	1.2956

Levels
Previous Daily High	1.3745
Previous Daily Low	1.361
Previous Weekly High	1.3746
Previous Weekly Low	1.352
Previous Monthly High	1.3686
Previous Monthly Low	1.3134
Daily Fibonacci 38.2%	1.3693
Daily Fibonacci 61.8%	1.3661
Daily Pivot Point S1	1.3651
Daily Pivot Point S2	1.3563
Daily Pivot Point S3	1.3516
Daily Pivot Point R1	1.3786
Daily Pivot Point R2	1.3833
Daily Pivot Point R3	1.3921

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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