GBP/USD remains depressed near 1.3800 ahead of US inflation

GBP/USD trades cautiously on Friday in the Asian trading hours.
The US dollar falls below 93.50 following dismal US GDP figures.
UK budget, Brexit, and hawkish BOE entertain the pound traders.

Rekha Chauhan Independent Analyst

GBP/USD remains firm during the Asian session on the last trading day of the week. The pair managed to gather momentum, following the previous session. At the time of writing, GBP/USD is trading at 1.3800, up 0.01% for the day.

The sterling keeps its foot firmly against the majors amidst the broad-based USD selling. The greenback gauge dropped the most since October 13 the previous day after the US Q3 Gross Domestic Product (GDP) fell below the 2.7% forecast to 2.0%, much lower than the previous reading of 6.7%. Investors assessed the downbeat GDP data as a hint that could push the Fed to slow down on its monetary policy normalization hustle.

In addition to that, UK Chancellor Rishi Sunak’s multi-billion pound 2021 budget and the hawkish Bank of England (BOE) seem to support the move in the currency.

The Brexit-led pessimism, however, limits gains in sterling. As per the BBC, France has seized a British trawler and another has been fined amid an escalating row over post-Brexit fishing rights.

As for now, traders keep their focus on the BOE Consumer Credit, Mortgage Lending and US Personal Consumption Expenditures-Price Index to gauge market sentiment.

GBP/USD technical levels

GBP/USD

Overview
Today last price	1.3801
Today Daily Change	0.0013
Today Daily Change %	0.09
Today daily open	1.3788

Trends
Daily SMA20	1.3691
Daily SMA50	1.3714
Daily SMA100	1.3785
Daily SMA200	1.3852

Levels
Previous Daily High	1.3815
Previous Daily Low	1.3722
Previous Weekly High	1.3834
Previous Weekly Low	1.3709
Previous Monthly High	1.3913
Previous Monthly Low	1.3412
Daily Fibonacci 38.2%	1.3779
Daily Fibonacci 61.8%	1.3758
Daily Pivot Point S1	1.3736
Daily Pivot Point S2	1.3683
Daily Pivot Point S3	1.3643
Daily Pivot Point R1	1.3828
Daily Pivot Point R2	1.3868
Daily Pivot Point R3	1.392

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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