GBP/USD remains confined in a range below 1.1600 mark, seems vulnerable


  • GBP/USD consolidated the recent steep decline to over three-decade lows.
  • Sustained USD buying might continue to keep a lid on any attempted bounce.

The GBP/USD pair lacked any firm intraday direction and seesawed between tepid gains/minor losses through the early European session on Thursday.

The pair now seems to have entered a bearish consolidation phase and digested the previous day's brutal selloff of nearly 700 pips to the lowest level since 1985, triggered by nervousness over the coronavirus pandemic.

The disappointing over the UK Prime Minister Borish Johnson's late move to discourage mass gathering and controversial measures on combating the coronavirus outbreak continued exerting some pressure on the British pound.

Even the UK government's massive £330 billion stimulus package announced on Tuesday did little to provide any respite for the bulls, while heightened demand for the US dollar exerted some additional pressure on the pair.

The fact that investors have been selling almost everything amid worries over the economic fallout from the coronavirus pandemic, the global rush to hoard cash provided a strong boost to the USD's status as the global reserve currency.

Despite the negative factors, extremely oversold conditions on short/medium-term charts held investors from placing fresh bearish bets and seemed to be the only factor that assisted the pair to hold above the key 1.1500 psychological mark.

Meanwhile, the pair inability to register any meaningful recovery suggests that the near-term selling bias might still be far from being over. Hence, any attempted bounce might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly.

Technical levels to watch

GBP/USD

Overview
Today last price 1.1546
Today Daily Change -0.0065
Today Daily Change % -0.56
Today daily open 1.1611
 
Trends
Daily SMA20 1.2723
Daily SMA50 1.2904
Daily SMA100 1.2958
Daily SMA200 1.2697
 
Levels
Previous Daily High 1.213
Previous Daily Low 1.1451
Previous Weekly High 1.3201
Previous Weekly Low 1.2264
Previous Monthly High 1.3204
Previous Monthly Low 1.2726
Daily Fibonacci 38.2% 1.171
Daily Fibonacci 61.8% 1.187
Daily Pivot Point S1 1.1331
Daily Pivot Point S2 1.1052
Daily Pivot Point S3 1.0652
Daily Pivot Point R1 1.2011
Daily Pivot Point R2 1.241
Daily Pivot Point R3 1.269

 

 

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