GBP/USD rebounds swiftly from 1-week lows, still in the red below 1.3000 mark


  • GBP/USD found some support ahead of the 1.2900 mark and witnessed a short-covering move.
  • A broad-based USD strength and Brexit uncertainties kept a lid on the pair’s attempted recovery.

The GBP/USD pair rallied around 100 pips from the daily swing lows, albeit seemed struggling to find acceptance above the key 1.3000 psychological mark.

The pair extended its recent pullback from the 1.3175 region and continued losing ground through the mid-European session on Wednesday. The steep decline marked the fourth day of a negative move and was exclusively sponsored by a broad-based US dollar strength.

Investors remain concerned that imposition of fresh lockdown measures to curb the second wave of COVID-19 infections could hinder the tepid global economic recovery. This, in turn, took its toll on the global risk sentiment and triggered a selloff in the equity markets.

The anti-risk flow provided a strong boost to the safe-haven greenback, which was seen as one of the key factors that continued exerting some pressure on the GBP/USD pair. The USD bulls seemed rather unaffected by the uncertainty about the outcome of the US election.

It is worth reporting that polls have been indicating a lead for the Democratic candidate Joe Biden over incumbent President Donald Trump. Investors, however, remain wary on the back of a narrow gap in key swing states and the possibility of the outcome being contested.

On the other hand, the British pound was undermined by persistent Brexit-related uncertainties amid the impasse on the matter of the future access of EU fishing fleets to UK waters. This, along with some technical selling below the 1.2990 level aggravated the intraday bearish pressure.

The GBP/USD pair, however, managed to find some support ahead of the 1.2900 mark and witnessed some aggressive short-covering move during the early North American session. The attempted bounce lacked any obvious fundamental catalyst and is more likely to remain limited.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2976
Today Daily Change -0.0069
Today Daily Change % -0.53
Today daily open 1.3045
 
Trends
Daily SMA20 1.2979
Daily SMA50 1.3009
Daily SMA100 1.2866
Daily SMA200 1.271
 
Levels
Previous Daily High 1.308
Previous Daily Low 1.3001
Previous Weekly High 1.3177
Previous Weekly Low 1.2895
Previous Monthly High 1.3482
Previous Monthly Low 1.2676
Daily Fibonacci 38.2% 1.305
Daily Fibonacci 61.8% 1.3031
Daily Pivot Point S1 1.3004
Daily Pivot Point S2 1.2963
Daily Pivot Point S3 1.2926
Daily Pivot Point R1 1.3083
Daily Pivot Point R2 1.3121
Daily Pivot Point R3 1.3162

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD hits new 2020 high near 1.35 on Brexit hopes

GBP/USD is rising toward 1.35, the highest since December 2020, shrugging off Brexit concerns. France may reportedly veto a deal if it sees too many compromises from the EU. The final US Services PMI met estimates.

GBP/USD News

EUR/USD holds onto 32-month highs after US data

EUR/USD is trading above 1.2150, the highest since April 2018. Optimism about a coronavirus vaccine and US fiscal stimulus boost markets and weigh on the safe-haven dollar. ISM Services PMI came out at 55.9, within estimates.

EUR/USD News

XAU/USD clings to gains near $1840 area, over one-week tops

Gold maintained its bid tone through the mid-European session and was last seen trading near the top end of its daily range, or over one-week highs around the $1840 region.

Gold news

Crypto market relentlessly fighting for new yearly highs

Bitcoin is leading the recovery in the cryptocurrency market after reclaiming the position above $19,000. Ethereum has managed to bring down the critical hurdle at $600 while Ripple is holding slightly above $0.62.

Read more

Extra week of Black Friday!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex MAJORS

Cryptocurrencies

Signatures