GBP/USD Price Analysis: Cluster of massive levels offer support after Fed announcement


  • GBP/USD has fallen around 1.7% after some serious USD strength earlier in the session.
  • Now there is a key support level shown on the chart below.

GBP/USD daily chart

GBP/USD has fallen heavily today after the USD strengthened following more risk-off moves. It seems the market is moving to cash after a drop in bond prices, gold and stock indices. This all leads to redemptions with some analyst's citing margin calls and a move back into cash as the key reason for the move. The Fed has announced a $500 blin round of support via the repo markets. This is not confirmed as QE but it is essentially USD funding for the bond markets. So, in theory, it's very similar.

Looking at the chart now, it seems the price capitulation was stemmed by the support from 20th September 2019. This level also confluenced quite closely to the Fibonacci extension of 138.2% and retracement at 61.8%. Very rarely do you see such a level, where all things match up so well.

GBP/USD Support levels

Additional levels

GBP/USD

Overview
Today last price 1.2601
Today Daily Change -0.0219
Today Daily Change % -1.71
Today daily open 1.282
 
Trends
Daily SMA20 1.2935
Daily SMA50 1.3
Daily SMA100 1.2993
Daily SMA200 1.2711
 
Levels
Previous Daily High 1.2976
Previous Daily Low 1.2805
Previous Weekly High 1.3049
Previous Weekly Low 1.2741
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.2871
Daily Fibonacci 61.8% 1.2911
Daily Pivot Point S1 1.2758
Daily Pivot Point S2 1.2696
Daily Pivot Point S3 1.2587
Daily Pivot Point R1 1.293
Daily Pivot Point R2 1.3039
Daily Pivot Point R3 1.3101

 

 

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