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


Today last price 1.3897
Today Daily Change -0.0025
Today Daily Change % -0.18
Today daily open 1.3922
Daily SMA20 1.4131
Daily SMA50 1.4019
Daily SMA100 1.3937
Daily SMA200 1.3593
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



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

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


GBP/USD edges higher past 1.3800 as covid optimism battles Brexit woes

GBP/USD seesaws around 1.3820, following the heaviest daily run-up in a week, amid Tuesday’s Asian session. The cable pair benefited from the latest reduction in the coronavirus numbers at home, as well as the broad softening of the US dollar, the previous day.


EUR/USD recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


SafeMoon price nears lift-off, as SAFEMOON possesses the conditions for a big move

Safemoon price has been coiling within a descending triangle pattern since the May crash, highlighted by no sustainable rallies and continuous support along the May 19 low of $0.00000261. The downward trajectory has kept SAFEMOON investors on the defensive.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more