• GBP/USD reclaims the 1.3400, as it recovers from three-days previous losses.
  • A weaker US dollar boosts the British pound, despite BoE dovishness in its last monetary policy meeting.
  • GBP/USD: Failure to hold 1.3400 could send the pair tumbling to the 1.3200 zone.

The British pound bounces off year-to-date lows at 1.3352, edges up 0.40%, trading at 1.3418 during the New York session at the time of writing. In the last three days, cable lost almost 2%, driven mainly by US dollar strength, influenced by higher inflation figures in the US economy, reported by the Labor Department. Also, a dovish stance perceived by investors in the last Bank of England (BoE) monetary policy meeting fueled the slide of the GBP.

US Dollar weakness boost the British pound, which reclaims the 1.3400 figure

The US Dollar Index, which measures the greenback’s performance against its peers, slides 0.03%, sitting at 95.11, acting as a headwind on the USD against the GBP. 

GBP/USD Price Forecast: Technical outlook

In the daily chart, the GBP/USD pair is trading within a descending channel, approaching the bottom-trendline around the  1.3350 area. Further, the daily moving averages (DMA’s) reside above the spot price, though supporting the downward bias. 

In the case of a daily close above the Thursday high at 1.3433, it could spur an upside move in the pair, towards the psychological 1.3500 area, that also coincides with the 61.8% Fibonacci retracement level, a price level that  GBP/USD sellers would defend to resume the downward bias.

On the flip side, failure at 1.3433 could open the door for a further downfall in the GBP/USD pair.  The first support would be the Friday low at 1.3353, followed by the bottom of the descending channel around the 1.3300 area, a level last seen in December 2020. A breach of that level would expose December 12, 2020, low at 1.3188.

GBP/USD

Overview
Today last price 1.3418
Today Daily Change 0.0054
Today Daily Change % 0.40
Today daily open 1.3364
 
Trends
Daily SMA20 1.3662
Daily SMA50 1.3676
Daily SMA100 1.3742
Daily SMA200 1.3846
 
Levels
Previous Daily High 1.3433
Previous Daily Low 1.3359
Previous Weekly High 1.3698
Previous Weekly Low 1.3424
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3387
Daily Fibonacci 61.8% 1.3405
Daily Pivot Point S1 1.3337
Daily Pivot Point S2 1.3311
Daily Pivot Point S3 1.3263
Daily Pivot Point R1 1.3412
Daily Pivot Point R2 1.346
Daily Pivot Point R3 1.3486

 

 

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