- GBP/USD failed to capitalize on the overnight goodish positive move.
- Brexit uncertainty, a pickup in the USD demand exerted some pressure.
The GBP/USD pair edged lower through the early North-American session on Thursday and refreshed daily lows, around the 1.3100 mark in the last hour.
As investors assessed the possibility of a BoE rate cut at its upcoming meeting on January 30, the pair failed to capitalize on the previous session's goodish intraday positive move and witnessed a modest pullback on Thursday.
It is worth recalling that the pair on Wednesday rallied around 120 pips intraday after the CBI's Quarterly Business Situation Index jumped sharply to +23 in January from -44 in October and marked the stronger level since April 2014.
The change also represented the largest quarterly swing since 1958 and added to the latest optimism led by Tuesday's stronger-than-expected UK wage growth figures. This eventually forced investors to trim BoE rate cut bets.
However, market concerns that Britain might crash out of the European Union by the end of this year held investors from placing any aggressive bullish bets and kept a lid on any runaway rally for the major, at least for the time being.
This coupled with the prevailing bullish sentiment surrounding the US dollar, further supported by the post-ECB weakness in the shared currency, exerted some additional pressure and contributed to the pair's downtick over the past hour or so.
Technical levels to watch
|Today last price||1.3121|
|Today Daily Change||-0.0014|
|Today Daily Change %||-0.11|
|Today daily open||1.3135|
|Previous Daily High||1.3154|
|Previous Daily Low||1.3035|
|Previous Weekly High||1.312|
|Previous Weekly Low||1.2954|
|Previous Monthly High||1.3515|
|Previous Monthly Low||1.2896|
|Daily Fibonacci 38.2%||1.3109|
|Daily Fibonacci 61.8%||1.308|
|Daily Pivot Point S1||1.3062|
|Daily Pivot Point S2||1.2989|
|Daily Pivot Point S3||1.2943|
|Daily Pivot Point R1||1.3181|
|Daily Pivot Point R2||1.3227|
|Daily Pivot Point R3||1.33|
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.