GBP/USD rallies amidst Greenback weakness on upbeat market mood

GBP/USD rebounds from a daily low of 1.2037, despite UK Services PMI and Composite figures indicating a contraction in business activity.
US ADP Employment Change report and ISM Non-Manufacturing PMI reveal a slowdown in private sector hiring and service sector activity, respectively.
Despite the lack of supportive UK economic data, the GBP finds support amidst a generally weakening US Dollar and positive market sentiment.

Christian Borjon Valencia FXStreet

The Pound Sterling (GBP) rallies against the US Dollar (USD) even though the latest round of UK economic data didn’t support the advance of Sterling, but overall weakness on the Greenback keeps most G8 FX currencies underpinned. The GBP/USD is trading at 1.2135 after sliding to a monthly low of 1.2037 earlier in the European session.

GBP/USD consolidates around 1.2140, as the Greenback's overall weakness and upbeat market sentiment overshadow uninspiring UK economic figures

An upbeat market sentiment is also boosting the British Pound. The latest UK economic docket showed that business activity slightly improved, as S& Global /CIPS revealed. The Services PMI and Composite figures jumped but remained below the 50 expansion/contraction threshold, it showed that consumer spending is shrinking.

In the United States, private sector hiring slowed in September, as indicated by the ADP Employment Change report, with a gain of 89,000 jobs. This figure was below the estimated 153,000 jobs and declined from August 177,000. Additionally, the ISM Non-Manufacturing PMI reported a business activity index of 53.6 in the services sector for September, which was as expected but decreased from the previous month's reading of 54.5.

GBP/USD Price Analysis: Technical outlook

The GBP/USD remains tilted to the downside from a daily chart standpoint. Still, price action during the last couple of days formed a ‘bullish engulfing’ candlestick chart pattern, suggesting that further upside is expected. Next, resistance emerges at the 1.2200 figure, followed by the October 2 high at 1.2219. Once those levels are cleared, the major could challenge September 29, the last cycle high at 1.2271, which could pave the way to test the 200-day moving average (DMA). Nevertheless, if GBP/USD remains below 1.2270, that could pave the way to test 1.2000, followed by the year-to-date (YTD) low of 1.1802.

GBP/USD

Overview
Today last price	1.2138
Today Daily Change	0.0061
Today Daily Change %	0.51
Today daily open	1.2077

Trends
Daily SMA20	1.2323
Daily SMA50	1.2557
Daily SMA100	1.2615
Daily SMA200	1.2437

Levels
Previous Daily High	1.2102
Previous Daily Low	1.2052
Previous Weekly High	1.2272
Previous Weekly Low	1.2111
Previous Monthly High	1.2713
Previous Monthly Low	1.2111
Daily Fibonacci 38.2%	1.2071
Daily Fibonacci 61.8%	1.2083
Daily Pivot Point S1	1.2052
Daily Pivot Point S2	1.2028
Daily Pivot Point S3	1.2003
Daily Pivot Point R1	1.2102
Daily Pivot Point R2	1.2127
Daily Pivot Point R3	1.2151

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold regains balance above $4,400

Gold rebounds on Wednesday, snapping a three-day losing streak and reclaiming the are beyond the key $4,400 mark per troy ounce. The precious metal’s bounce comes amid further selling pressure on the US Dollar and steady uncertainty on the geopolitical front.

Bitcoin outperforms global assets as $83K-$86K resistance zone continues to weigh on rally

Bitcoin (BTC) has continued to recover from its mid-year weakness, outperforming major traditional assets over the past month, amid strong resistance around the $83,000 to $86,000 range. BTC gained 23% over the past 21 trading sessions, while the S&P 500 and Nasdaq 100 were broadly flat and the Euro Stoxx 50 declined, according to a Glassnode report published Wednesday.

Private credit books a Fed hike as income until borrowers stop paying

Seven of the largest publicly traded business development companies (BDCs) state in their June quarter filings what a rise in the base rate is worth to them. Across the seven, 100 basis points adds $677.1 million of annualised interest and dividend income and $367.2 million of net income.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.