GBP/USD remains poised to break 1.3900 ahead of UK data


  • GBP/USD continues to slip down in the early European session.
  • A combination of factors weighs on sterling's performance.
  • Uptick in US treasury yields underpins the US dollar demand.

The appreciative move in the US dollar keeps GBP/USD under pressure on the last trading day of the week. The pair broke the broader consolidating range of 1.4100-1.4220 on Monday and continued to skid lower. 

At the time of writing, GBP/USD trades at 1.3901, down 0.13% for the day.

The US Dollar Index (DXY), which tracks the performance of the US dollar stands higher at 91.92 with 0.05% gains. The greenback moves in tandem with the US 10-year benchmark yields, which read at 1.51%.

Investors digested the Fed hawkish inflation forecast and the timing of the probable two rate hikes. Market participants shrugged off the weaker Initial Jobless Claims data as the growth prospects overshadowed the poor readings.

On the other hand, the sterling remained unfazed by the reports that the extended lockdown could end two weeks earlier on July 5. 

On the economic side, UK inflation rose more than expected in May to the highest level since July 2019 and above the Bank of England’s (BOE) target of 2.0%.

In the latest development, the latest Reuters poll of 67 economists showed that the central bank would keep its monetary policy unchanged ahead of next week’s BOE interest rate decision.

Meanwhile, UK relations with the EU worsens over the Northern Ireland protocol. The UK has asked EU to extend the grace period for chilled meat exports, as it will be banned at the end of June under the terms of the NI Brexit agreement. This, in turn, sour the sentiment around the cable.

As for now, investors are closely watching for the UK Retail Sales data to gauge the market sentiment.

GBP/USD additional levels

GBP/USD

Overview
Today last price 1.3897
Today Daily Change -0.0025
Today Daily Change % -0.18
Today daily open 1.3922
 
Trends
Daily SMA20 1.4131
Daily SMA50 1.4019
Daily SMA100 1.3937
Daily SMA200 1.3593
 
Levels
Previous Daily High 1.4009
Previous Daily Low 1.3896
Previous Weekly High 1.4191
Previous Weekly Low 1.4073
Previous Monthly High 1.4234
Previous Monthly Low 1.3801
Daily Fibonacci 38.2% 1.3939
Daily Fibonacci 61.8% 1.3966
Daily Pivot Point S1 1.3876
Daily Pivot Point S2 1.3829
Daily Pivot Point S3 1.3763
Daily Pivot Point R1 1.3989
Daily Pivot Point R2 1.4055
Daily Pivot Point R3 1.4102

 

 

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