GBP/USD refreshes session lows, around 1.4130 region amid notable USD strength

GBP/USD once again failed ahead of the 1.4200 mark and met with some fresh supply on Friday.
COVID-19 jitters, Brexit woes continued weighing on the British pound and exerted some pressure.
Resurgent USD demand was seen as another factor that contributed to the intraday selling bias.

Haresh Menghani FXStreet

The GBP/USD pair extended its steady intraday descent through the early North American session and dropped to fresh daily lows, around the 1.4140-35 region in the last hour.

The pair struggled to capitalize on the previous day's solid bounce of over 100 pips from the 1.4075-70 region, or four-week lows and once again failed ahead of the 1.4200 mark. Investors remain worried that the UK may delay its plans to end restrictions fully on June 21 in light of the spread of the so-called Delta variant. Apart from this, the EU-UK collision over Norther Ireland protocol acted as a headwind for the British pound and prompted some fresh selling around the GBP/USD pair.

On the other hand, the US dollar made a strong comeback following the post-US CPI slide on Thursday and shot to over one-week tops. This, in turn, was seen as another factor that exerted some additional downward pressure on the GBP/USD pair. The USD bulls seemed unaffected by the ongoing slide in the US Treasury bond yields, fueled by the growing market conviction that the Fed will retain its ultra-lose policy stance for a longer period despite signs of rising inflationary pressure.

From a technical perspective, the emergence of some fresh selling near the 1.4185-90 supply zone favours bearish traders and supports prospects for further near-term losses. That said, it will still be prudent to wait for some follow-through selling below the 1.4100 mark before positioning for an extension of the depreciating move. This will further suggest that the GBP/USD pair has topped out in the near term and pave the way for a slide to test the key 1.4000 psychological mark.

Market participants now look forward to the release of the Preliminary Michigan US Consumer Sentiment index for some impetus. The key focus, however, will remain on the upcoming FOMC policy meeting on June 15-16. This will play a key role in influencing the near-term USD price dynamics and help investors to determine the next leg of a directional move for the GBP/USD pair.

Technical levels to watch

GBP/USD

Overview
Today last price	1.4139
Today Daily Change	-0.0037
Today Daily Change %	-0.26
Today daily open	1.4176

Trends
Daily SMA20	1.4157
Daily SMA50	1.3996
Daily SMA100	1.392
Daily SMA200	1.3568

Levels
Previous Daily High	1.4178
Previous Daily Low	1.4073
Previous Weekly High	1.4249
Previous Weekly Low	1.4083
Previous Monthly High	1.4234
Previous Monthly Low	1.3801
Daily Fibonacci 38.2%	1.4138
Daily Fibonacci 61.8%	1.4113
Daily Pivot Point S1	1.4107
Daily Pivot Point S2	1.4038
Daily Pivot Point S3	1.4002
Daily Pivot Point R1	1.4212
Daily Pivot Point R2	1.4247
Daily Pivot Point R3	1.4317

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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