GBP/USD rebounds toward 1.3900 as USD weakens

GBP/USD accumulates minor gains on Wednesday.
US dollar trades below 93.00 ahead of the FOMC meeting.
The sterling gains on the sharp decline in coronavirus infections.

Rekha Chauhan Independent Analyst

GBP/USD extends the previous two day’s gains in Wednesday’s Asian session. The pair trades in a very narrow trade band and awaits for confirmation.

At the time of writing, GBP/USD is trading at 1.3879, up 0.04% for the day.

The US Dollar Index (DXY), which tracks the greenback performance against its six major rivals, trades below 92.50, with 0.17% losses. Investors remain nervous about the Fed’s interests rate decision.

The Upbeat economic data fails to enhance the USD valuations. The US Durable Goods Orders were up 0.8% in June. The S&P CoreLogic Case-Shiller Home Price Index gained 17% in May on yearly basis.

On the other hand, the sterling printed gains against the greenback after the UK recorded 24,950 new cases on Monday, down for a sixth day and well below the 39,950 from a week earlier.

On the economic data front, the CBI Retail Sales data came at 23 in July, mildly above the market forecast of 21.

Meantime, the EU has backed off a threat of legal action against the UK over the Brexit deal. This, in turn, added to the attractiveness of the pound.

As for now, investors await the Fed’s interest rate decision to gauge the market sentiment.

GBP/USD additional levels

GBP/USD

Overview
Today last price	1.3879
Today Daily Change	0.0061
Today Daily Change %	0.44
Today daily open	1.3818

Trends
Daily SMA20	1.3795
Daily SMA50	1.3967
Daily SMA100	1.3925
Daily SMA200	1.3718

Levels
Previous Daily High	1.3833
Previous Daily Low	1.3737
Previous Weekly High	1.3787
Previous Weekly Low	1.3572
Previous Monthly High	1.4249
Previous Monthly Low	1.3787
Daily Fibonacci 38.2%	1.3797
Daily Fibonacci 61.8%	1.3774
Daily Pivot Point S1	1.3759
Daily Pivot Point S2	1.37
Daily Pivot Point S3	1.3663
Daily Pivot Point R1	1.3855
Daily Pivot Point R2	1.3892
Daily Pivot Point R3	1.3951

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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