GBP/USD Price Analysis: Struggles to conquer 1.3700 mark amid stronger USD

  • GBP/USD edged higher on Wednesday, albeit lacked any strong follow-through buying.
  • Renewed USD buying interest was seen as a key factor capping any meaningful upside.
  • The technical set-up favours bullish traders and supports prospects for additional gains.

The GBP/USD pair traded with a mild positive bias through the early North American session, albeit seemed struggling to build on the momentum beyond the 1.3700 mark.

The US dollar was back in demand amid a modest bounce in the US Treasury bond yields and held steady following the release of US consumer inflation figures. This, in turn, was seen as one of the key factors capping gains for the GBP/USD pair.

From a technical perspective, the overnight breakout momentum through a short-term descending trend-line resistance supports prospects for additional gains. The constructive set-up is reinforced by bullish oscillators on hourly/daily charts.

That said, bulls might still wait for some follow-through buying beyond the 1.3700 round-figure before positioning for any further appreciating move. The GBP/USD pair might then accelerate the momentum to the 1.3775-80 area en-route the 1.3800 mark.

On the flip side, the daily swing lows, around mid-1.3600s, now seems to act as immediate support. Any subsequent slide might attract some dip-buying and help limit the downside near the trend-line resistance breakpoint, around the 1.3600 level.

Failure to defend the mentioned resistance-turned-support might prompt some technical selling and drag the GBP/USD pair further towards the 1.3560-55 horizontal support. This is followed by strong support near the 1.3520-15 region.

A convincing breakthrough, leading to weakness below the key 1.3500 psychological mark will negate any near-term positive bias and constitute the formation of a bearish double-top. This would set the stage for some meaningful corrective slide.

GBP/USD 4-hourly chart


Technical levels to watch


Today last price 1.3682
Today Daily Change 0.0016
Today Daily Change % 0.12
Today daily open 1.3666
Daily SMA20 1.3549
Daily SMA50 1.3393
Daily SMA100 1.3193
Daily SMA200 1.2896
Previous Daily High 1.3669
Previous Daily Low 1.3502
Previous Weekly High 1.3704
Previous Weekly Low 1.3532
Previous Monthly High 1.3686
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3605
Daily Fibonacci 61.8% 1.3565
Daily Pivot Point S1 1.3555
Daily Pivot Point S2 1.3445
Daily Pivot Point S3 1.3388
Daily Pivot Point R1 1.3722
Daily Pivot Point R2 1.3779
Daily Pivot Point R3 1.3889



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News