GBP/USD refreshes session tops, just above 1.2600 handle on dismal US data


  • The USD weakens following the release of the dismal regional manufacturing index.
  • Persistent Brexit uncertainties might keep a lid on any strong follow-through up-move.

The GBP/USD pair spiked to fresh session tops, with bulls looking to build on the recovery momentum further beyond the 1.2600 handle post-US data.

The US Dollar failed to capitalize on Friday's goodish bound and remained depressed on the first day of a new trading week, rather lost some ground following the release of weaker Empire State Manufacturing Index. In fact, the index dropped to -8.6 for June - marking its first contraction since May 2017 and the lowest reading since October 2016.

The data triggered a sharp intraday pullback in the US Treasury bond yields, which dragged the greenback farther from a two-week high set on Monday and turned out to be one of the key factors providing a minor lift to the major, albeit persistent Brexit uncertainties kept a lid on any further up-move.

Given that hardline Brexiteer Boris Johnson remains a leading candidate to be Britain's next Prime Minister, sentiment surrounding the British Pound remains fragile amid fears of a no-deal Brexit. Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term or positioning for any further near-term recovery.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2594
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.2594
 
Trends
Daily SMA20 1.2676
Daily SMA50 1.2865
Daily SMA100 1.2981
Daily SMA200 1.294
Levels
Previous Daily High 1.269
Previous Daily Low 1.2579
Previous Weekly High 1.2759
Previous Weekly Low 1.2579
Previous Monthly High 1.3178
Previous Monthly Low 1.2559
Daily Fibonacci 38.2% 1.2621
Daily Fibonacci 61.8% 1.2647
Daily Pivot Point S1 1.2552
Daily Pivot Point S2 1.251
Daily Pivot Point S3 1.2441
Daily Pivot Point R1 1.2662
Daily Pivot Point R2 1.2731
Daily Pivot Point R3 1.2773

 

 

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