GBP/USD retreats after hitting daily highs above 1.3850


  • US Dollar mixed across the board, finds support from rebound in US yields.
  • UK: PM Johnson changes members of his Cabinet.
  • GBP/USD holds onto daily gains, remains unable to break 1.3900.

The GBP/USD printed a fresh daily high during the American session at 1.3853 and then pulled back toward 1.3820. It is hovering around 1.3840, in positive ground for the day. Cable continues to move sideways, with support around 1.3800 and unable to confirm levels above 1.3900.

Data and cabinet reshuffle

UK Primer Minister Boris Johnson made changes to his cabinet. Liz Truss will be the Foreign Secretary, and Dominic Raab will become Justice Secretary. Robert Buckland, Robert Jenrick and Gavin Williams will leave the Cabinet office.

Earlier on Wednesday, economic data from the UK showed higher than expected inflation numbers. In August the CPI rose 3.2% (YoY). The numbers boosted the pound only modestly.

“The next focus for GBP will be tomorrow’s release of August retail sales.  This is expected to bounce by 0.8% m/m after the -2.4% m/m plunge registered in July.  That number prompted speculation that much of the lockdown related pent up demand in the UK has run its course.  Tomorrow’s data will likely be key in setting that tone ahead of the September 23 BoE policy meeting”, wrote analysts at Rabobank.

Technical levels

GBP/USD

Overview
Today last price 1.383
Today Daily Change 0.0020
Today Daily Change % 0.14
Today daily open 1.381
 
Trends
Daily SMA20 1.377
Daily SMA50 1.3807
Daily SMA100 1.3916
Daily SMA200 1.383
 
Levels
Previous Daily High 1.3913
Previous Daily Low 1.3804
Previous Weekly High 1.3889
Previous Weekly Low 1.3726
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3846
Daily Fibonacci 61.8% 1.3871
Daily Pivot Point S1 1.3771
Daily Pivot Point S2 1.3733
Daily Pivot Point S3 1.3662
Daily Pivot Point R1 1.3881
Daily Pivot Point R2 1.3952
Daily Pivot Point R3 1.399

 

 

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