- 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
|Today last price||1.2594|
|Today Daily Change||0.0000|
|Today Daily Change %||0.00|
|Today daily open||1.2594|
|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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