•  Investors looked past today’s upbeat UK construction PMI.
   •  A pickup in the US bond yields helps ease USD bearish pressure. 
   •  Technical selling emerges ahead of 100-SMA on the 4-hourly chart.

The GBP/USD pair faced rejection near the 1.3400 handle and quickly retreated around 40-pips from 1-1/2 week tops touched earlier.

The pair initially built on last week's recovery move from the 1.3200 neighborhood, or 6-month lows, and was further supported by some renewed US Dollar selling bias, led by escalating trade tensions. The up-move got an additional boost following the release of yet another surprisingly stronger-than-expected UK macro data, this time coming in the form of UK construction PMI

The bullish momentum, however, remained capped below 100-period SMA on the 4-hourly chart and already seems to have lost steam amid a goodish pickup in the US Treasury bond yields, which now seems to have eased bearish pressure surrounding the greenback, at least for the time being.

It would now be interesting to see if the pair is able to find any dip-buying interest at lower levels or the current pull-back marks the end of recent corrective bounce amid uncertainty surrounding Brexit talks and the recent dovish tilt by the BoE.

Technical levels to watch

Any subsequent retracement is likely to find strong support near the 1.3310-1.3300 region, below which the pair is likely to resume with its prior depreciating slide and head back towards retesting the 1.3245 support area. 

On the flip side, the 1.3400 handle might continue to act as an immediate strong hurdle, which if cleared might trigger an additional short-covering move towards the 1.3460-65 supply zone en-route the key 1.3500 psychological mark.
 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD losses momentum and trades around 0.6950

AUD/USD losses momentum and trades around 0.6950

AUD/USD eased in the American session to settle at the lower end of its Tuesday range. Lingering Chinese and US inflation figures sent investors to the sidelines. Eyes on equities and government bond yields.

AUD/USD News

EURUSD returns 1.0200 as the market mood sours

EURUSD returns 1.0200 as the market mood sours

The EUR/USD pair is battling to hold above the 1.0200 mark, undermined by a souring market mood. The European energy crisis adds to the poor performance of the shared currency.

EUR/USD News

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold bulls to challenge $1,800 ahead of US inflation figures

Gold kept rallying on Tuesday, hitting a fresh one-month high. The greenback remained weak throughout the first half of the day, recovering some ground after Wall Street’s opening amid the poor tone of US indexes.

Gold News

Iran adopts crypto in foreign trade, debuts with $10 million import order

Iran adopts crypto in foreign trade, debuts with $10 million import order

In a watershed moment for crypto adoption, Iran registered its first official order for importing $10M worth of goods paid for in cryptocurrencies. A private Iranian news agency reported that the Ministry of Industry, Mine and Trade has plans to widely use cryptos in foreign trade.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures