GBP/USD recovers early lost ground, flat-lined below mid-1.4100s

  • A combination of supporting factors assisted GBP/USD to attract some dip-buying on Wednesday.
  • Upbeat UK macro releases reaffirmed the optimistic outlook and underpinned the British pound.
  • Softer US bond yields capped the USD recovery and further extended support ahead of the US CPI.

The GBP/USD pair recovered its early lost ground and was last seen trading near the top end of its intraday trading range, just below mid-1.4100s.

The pair struggled to capitalize on its recent strong gains recorded over the past three sessions and witnessed some selling during the first half of the trading action on Wednesday. The prevalent risk-off mood drove some haven flows towards the US dollar and was seen as a key factor exerting pressure on the GBP/USD pair.

The global risk sentiment took a hit amid an escalation of conflict between Israel and Palestinian militant group, sparked by unrest at Jerusalem's Al-Aqsa Mosque. This comes on the back of worries that rising inflationary pressure might force the Fed to hike rates earlier than anticipated, which dented investors' confidence.

The early downtick, however, turned out to be short-lived and was quickly bought into amid the optimistic outlook for the UK economy. This was reinforced by Wednesday's upbeat UK macro releases, which showed that the economy expanded by 2.1% MoM in March. This was accompanied by an upward revision of the previous month's reading.

Adding to this, the UK Industrial/Manufacturing Production figures and Goods Trade Balance also came in better than consensus estimates. This, in turn, assisted the GBP/USD pair to attract some dip-buying near the 1.4100 mark. Apart from this, a modest USD pullback from daily tops further extended some support to the major.

A softer tone surrounding the US Treasury bond yields kept a lid on the attempted USD recovery from over 10-week lows touched in the previous session. That said, traders seemed reluctant to place any aggressive bullish bets around the GBP/USD pair, rather preferred to wait on the critical US CPI report, due later during the early North American session.

Technical levels to watch


Today last price 1.4137
Today Daily Change -0.0006
Today Daily Change % -0.04
Today daily open 1.4143
Daily SMA20 1.3916
Daily SMA50 1.3866
Daily SMA100 1.3798
Daily SMA200 1.346
Previous Daily High 1.4166
Previous Daily Low 1.4104
Previous Weekly High 1.4006
Previous Weekly Low 1.3801
Previous Monthly High 1.4009
Previous Monthly Low 1.3669
Daily Fibonacci 38.2% 1.4143
Daily Fibonacci 61.8% 1.4128
Daily Pivot Point S1 1.4109
Daily Pivot Point S2 1.4075
Daily Pivot Point S3 1.4047
Daily Pivot Point R1 1.4172
Daily Pivot Point R2 1.42
Daily Pivot Point R3 1.4234



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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD jumps towards 1.1950 amid upbeat Eurozone PMIs

EUR/USD rebounds towards 1.1950 after German and Eurozone Preliminary PMIs beat expectations. The US dollar stalls its recovery amid dovish Fed's Powell. US PMIs and Fedspeak remain in focus. 


GBP/USD advances towards 1.4000 ahead of UK PMI

GBP/USD bounces back towards 1.4000 ahead of the UK PMIs. The US dollar pauses its rebound and turns south amid a risk-on market mood. Renewed Brexit optimism also underpins the spot. 


Gold: Battle lines well-defined below $1800

Gold wavers in a narrow range, digesting dovish Powell’s comments. US dollar reverses early gains, despite worsening market mood.

Gold News

Three reasons why SafeMoon price might rally 60% soon

SafeMoon price has experienced a massive sell-off since June 15 as it deviated below its previous range low established on May 23. However, this deviation is likely to revert to the mean, providing an excellent opportunity for an uptrend.

Read more

Apple breaks out of weekly triangle, targets record high

AAPL shares are continuing to push higher as FAANG names and the Nasdaq lead the equity markets higher. Apple shares have struggled for momentum since releasing results in late April as the Nasdaq, in particular, suffered for most of May. 

Read more