• Pound fails to hold above 1.3300 versus US dollar.
  • Market sentiment deteriorates during the American session.
  • GBP/USD heads for lowest daily close since December 2020.

The GBP/USD turned to the downside after hitting a daily high at 1.3363 and dropped to 1.3295, reaching a fresh daily low. It then bounced back above 1.3300 but remains under pressure.

The US dollar gained momentum during the American session as the recovery in equity markets lost strength. Main stock indices in Wall Street remain in sportive territory but far from the highs. The Dow Jones gains just 0.10%.

Treasury yields are pulling back from daily highs as market sentiment deteriorates. The slide in US yields could limit the advance of the US dollar versus major European currencies. The 10-year yield fell from 1.56% to 1.52% during the last hour. Still, GBP/USD is headed toward the lowest daily close in almost a year.

Short-term outlook

A daily close below 1.3300 suggests more losses ahead for the pound in line with the dominant trend. The next support stands at 1.3270. The negative tone remains intact after cable was unable to hold above 1.3350.

If GBP/USD manages to rise back above 1.3350 and posts a daily close clearly above 1.3370, it would alleviate the bearish pressure. The next resistance stands at 1.3390 followed by 1.3415.

Technical levels

GBP/USD

Overview
Today last price 1.3302
Today Daily Change -0.0051
Today Daily Change % -0.38
Today daily open 1.3353
 
Trends
Daily SMA20 1.3466
Daily SMA50 1.3586
Daily SMA100 1.3695
Daily SMA200 1.3821
 
Levels
Previous Daily High 1.3361
Previous Daily Low 1.3278
Previous Weekly High 1.3457
Previous Weekly Low 1.3278
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3329
Daily Fibonacci 61.8% 1.331
Daily Pivot Point S1 1.3301
Daily Pivot Point S2 1.3248
Daily Pivot Point S3 1.3218
Daily Pivot Point R1 1.3383
Daily Pivot Point R2 1.3413
Daily Pivot Point R3 1.3466

 

 

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