GBP/USD reaches out for 1.2100 as Dollar trips again ahead of US PMI

GBP/USD jumps back toward 1.2100 amid risk recovery.
US Dollar rebound fizzles out, USD/JPY sell-off weighs.
GBP/USD bounces off 200DM, RSI enters into the bullish zone.

Dhwani Mehta FXStreet

GBP/USD is holding onto the latest upswing toward 1.2100, as bulls jump back into the game amid holiday-thinned market conditions.

The main catalyst behind the pair’s renewed upside is the fresh round of selling seen in the US Dollar across the board. As the broad market sentiment is improving, the safe-haven US Dollar is fading its recovery attempts amid a subdued performance in the US Treasury bond yields. Upbeat Chinese Caixin Manufacturing is helping lift the overall market mood, with the US S&P 500 futures wiping out entire losses.

The fresh move lower in the US Dollar is also driven by the USD/JPY sell-off, as the Japanese yen rallies hard on speculations that the Bank of Japan (BoJ) is on course to exit from its ultra-loose easy monetary, as the year 2023 kicks in. In absence of any high-impact data from both sides of the Atlantic, risk trends and the US Dollar price action will continue, although the US S&P Global Manufacturing PMI could offer some trading incentives to Cable.

From a short-term technical perspective, the GBP/USD pair is extending its range play below the 21 and 200-Daily Moving Averages (DMA) for the third straight trading day.

GBP bulls continue defending the 200DMA at 1.2036, looking to take out the daily highs at 1.2085 in a bid to recapture the 1.2100 round figure.

The 14-day Relative Strength Index (RSI) is heading higher above the midline, justifying the renewed uptick.

GBP/USD: Daily chart

On the downside, Cable needs a sustained move above the 200DMA before challenging the 1.2000 barrier.

A breach of the latter could trigger a fresh sell-off toward the bullish 50DMA at 1.1933.

GBP/USD: Additional technical levels

GBP/USD

Overview
Today last price	1.2075
Today Daily Change	0.0024
Today Daily Change %	0.20
Today daily open	1.2049

Trends
Daily SMA20	1.2151
Daily SMA50	1.1922
Daily SMA100	1.1667
Daily SMA200	1.2041

Levels
Previous Daily High	1.2102
Previous Daily Low	1.2034
Previous Weekly High	1.2126
Previous Weekly Low	1.2002
Previous Monthly High	1.2447
Previous Monthly Low	1.1992
Daily Fibonacci 38.2%	1.206
Daily Fibonacci 61.8%	1.2076
Daily Pivot Point S1	1.2021
Daily Pivot Point S2	1.1994
Daily Pivot Point S3	1.1954
Daily Pivot Point R1	1.2089
Daily Pivot Point R2	1.2129
Daily Pivot Point R3	1.2156

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.