• GBP/USD staged a goodish intraday bounce from the 1.3800 mark, or over two-week lows.
  • Mixed US inflation figures prompted some USD profit-taking and provided a goodish lift.
  • The lack of any strong follow-through buying warrants some caution for bullish traders.

The GBP/USD pair caught some aggressive bids during the early North American session and shot to fresh daily tops, around the 1.3870-75 region in reaction to mixed US inflation figures.

The pair found decent support and attracted some dip-buying near the 1.3800 round-figure mark, or over two-week lows touched earlier this Wednesday. The intraday recovery move got an additional boost following the release of the US consumer inflation figures, which prompted some profit-taking around the US dollar.

The headline CPI decelerate to 0.5% in July from the 0.9% increase recorded in the previous month. Adding to this, core CPI, which excludes food and energy prices, rose 0.3% MoM against 0.4% expected and June's 0.9%. This, along with Richmond Fed President Thomas Barkin's comments, weighed on the greenback.

Barkin noted that it may take a few months more for the US job market to recover enough for the Fed to reduce its crisis-era support for the economy. The combination of factors forced investors to trim their bets for an earlier Fed tapering. This was evident from a sharp pullback in the US Treasury bond yields.

In fact, the yield on the benchmark 10-year US government bond slumped back below the 1.35% threshold. Apart from this, a slightly positive risk tone further acted as a headwind for the safe-haven greenback. That said, the lack of any follow-through buying around the GBP/USD pair warrants caution for bullish traders.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3871
Today Daily Change 0.0031
Today Daily Change % 0.22
Today daily open 1.384
 
Trends
Daily SMA20 1.3831
Daily SMA50 1.3907
Daily SMA100 1.3924
Daily SMA200 1.3767
 
Levels
Previous Daily High 1.3873
Previous Daily Low 1.3828
Previous Weekly High 1.3958
Previous Weekly Low 1.3861
Previous Monthly High 1.3984
Previous Monthly Low 1.3572
Daily Fibonacci 38.2% 1.3845
Daily Fibonacci 61.8% 1.3855
Daily Pivot Point S1 1.3821
Daily Pivot Point S2 1.3802
Daily Pivot Point S3 1.3776
Daily Pivot Point R1 1.3866
Daily Pivot Point R2 1.3892
Daily Pivot Point R3 1.3911

 

 

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