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GBP/USD rebounds above 1.3400, holds onto modest weekly gains

  • US dollar pullback late on Friday as market sentiment recovers.
  • Pound is set to end the week higher versus the US dollar and above 1.3400.
  • Charts continue to show weakness in GBP/USD.

The GBP/USD pair rose during the American session and recovered from 1.3406 to the 1.3470 area, trimming losses. The recovery pushed the weekly result back into positive ground.

Again cable found support at the 1.3400 area that has become a critical level. A break lower could trigger more losses, exposing the November low at 1.3351. The recovery faced resistance around 1.3500/10. The bearish bias will likely remain intact while under 1.3600.

Thanksgiving ahead

Next week economic data to be released includes the PMIs across the globe. It will be the preliminary reading of November. Also GDP data is due in Germany and the US. “The Thanksgiving holiday in the US means a short week with the data flow concentrated on Wednesday. The highlight may well be the minutes to the November 3rd FOMC meeting when the Federal Reserve announced the start of QE tapering”, explained analysts at ING.

Also market participants await news regarding the next Fed Chair. President Biden is set to announce a new term for Powell or Brainard as his replacement. In the UK, Brexit concerns are on the rise and will likely keep creating headlines next week.

Technical levels

GBP/USD

Overview
Today last price1.3464
Today Daily Change-0.0035
Today Daily Change %-0.26
Today daily open1.3499
 
Trends
Daily SMA201.358
Daily SMA501.3639
Daily SMA1001.3723
Daily SMA2001.3837
 
Levels
Previous Daily High1.3514
Previous Daily Low1.3464
Previous Weekly High1.3607
Previous Weekly Low1.3353
Previous Monthly High1.3834
Previous Monthly Low1.3434
Daily Fibonacci 38.2%1.3495
Daily Fibonacci 61.8%1.3483
Daily Pivot Point S11.3471
Daily Pivot Point S21.3443
Daily Pivot Point S31.3421
Daily Pivot Point R11.352
Daily Pivot Point R21.3542
Daily Pivot Point R31.357

Author

Matías Salord

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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