- GBP/USD witnessed selling for the third successive day and dropped to over a two-week low.
- A sustained break below the 1.3535-1.3530 confluence was seen as a fresh trigger for bears.
- The stage now seems all set for a slide towards testing the 50% Fibo., around mid-1.3400s.
The GBP/USD pair added to its intraday losses and dropped to a two-and-half-week low, below the 1.3500 psychological mark during the mid-European session.
The UK political crisis, along with disappointing UK PMI prints undermined the British pound. Apart from this, a strong pickup in the US dollar demand turned out to be a key factor that dragged the GBP/USD pair lower for the third successive day.
From a technical perspective, a sustained break below the 1.3535-1.3530 confluence was seen as a fresh trigger for bearish traders. The mentioned region comprised of the 100-day SMA and the 38.2% Fibonacci retracement level of 1.3161-1.3749 strong move up.
Meanwhile, oscillators on the daily chart have just started drifting into the negative territory and support prospects for further losses. Hence, some follow-through slide towards the 50% Fibo. level, around the 1.3455 region, remains a distinct possibility.
On the flip side, any attempted recovery might now meet with a fresh supply near the 1.3530-1.3535 confluence support breakpoint. This, in turn, should cap the upside for the GBP/USD pair near the 1.3580-1.3585 region, which should now act as a pivotal point.
The latter is closely followed by the 1.3600 mark and the 23.6% Fibo. level, which if cleared decisively will negate the bearish bias. The GBP/USD pair might then accelerate the momentum towards the 1.3660 resistance en-route the 1.3700 round-figure mark.
GBP/USD daily chart
-637786232010138338.png)
Levels to watch
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.
Recommended content
Editors’ Picks
EUR/USD declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD struggles to hold above 1.2500
GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.
Gold stuck around $2,300 as market players lack directional conviction
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.