GBP/USD recovers early lost ground, nearly unchanged around 1.2560-70 region


  • GBP/USD reverses an early dip to 1.2520 region amid a modest USD pullback from highs.
  • The USD bulls seemed rather unimpressed by Thursday’s mostly upbeat US macro data.

The GBP/USD pair managed to rebound around 50 pips from daily lows and is currently placed in the neutral territory, around the 1.2565-70 region.

The pair extended the previous day's retracement slide from mid-1.2600s and witnessed some follow-through selling through the first half of the trading action on Thursday. The downfall was exclusively sponsored by some haven flows towards the US dollar, led by the prevalent risk-off mood.

The latest optimism over a potential vaccine for the highly contagious coronavirus disease fizzled out rather quickly amid concerns about worsening US-China relations. This comes on the back of the ever-increasing COVID-19 cases globally, which took its toll on the global risk sentiment.

However, a weaker tone surrounding the US Treasury bond yields kept a lid on any strong gains for the greenback and assisted the pair to find some support ahead of the key 1.2500 psychological mark. Even Thursday's mostly upbeat US macro releases did little to impress the USD bulls.

Data published by the US Census Bureau revealed that the US monthly Retail Sales rose by 7.5% in June but were down 8.1% from the same period a year ago. Meanwhile, the Philly Fed Manufacturing Index came in at 24.1 for July as compared to the expected fall to 20 from 27.5 previous.

Separately, the US Initial Weekly Jobless Claims fell less than expected to 1.30 million during the week ending July 11 as against consensus estimates pointing to a drop to 1.250 million from 1.310 million recorded in the previous week.

It will now be interesting to see if the GBP/USD pair is able to capitalize on the intraday bounce or meets with some fresh supply at higher levels. Indications of a weaker opening in the US equity markets might continue to underpin the safe-haven USD and keep a lid on any strong gains.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2568
Today Daily Change -0.0020
Today Daily Change % -0.16
Today daily open 1.2588
 
Trends
Daily SMA20 1.2481
Daily SMA50 1.2441
Daily SMA100 1.2426
Daily SMA200 1.2704
 
Levels
Previous Daily High 1.265
Previous Daily Low 1.2549
Previous Weekly High 1.267
Previous Weekly Low 1.2463
Previous Monthly High 1.2813
Previous Monthly Low 1.2252
Daily Fibonacci 38.2% 1.2611
Daily Fibonacci 61.8% 1.2587
Daily Pivot Point S1 1.2541
Daily Pivot Point S2 1.2495
Daily Pivot Point S3 1.2441
Daily Pivot Point R1 1.2642
Daily Pivot Point R2 1.2696
Daily Pivot Point R3 1.2743

 

 

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