GBP/USD refreshes session low, around 1.3100 level

GBP/USD failed to capitalize on the overnight goodish positive move.
Brexit uncertainty, a pickup in the USD demand exerted some pressure.

Haresh Menghani FXStreet

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

GBP/USD

Overview
Today last price	1.3121
Today Daily Change	-0.0014
Today Daily Change %	-0.11
Today daily open	1.3135

Trends
Daily SMA20	1.3086
Daily SMA50	1.3048
Daily SMA100	1.2823
Daily SMA200	1.2691

Levels
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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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