GBP/USD retreats from one-week tops, up little around 1.3755-60 region


  • GBP/USD gained traction for the third straight day, albeit struggled to capitalize on the move.
  • A modest pickup in the US bond yields underpinned the USD and capped gains for the major.
  • A subsequent slide below the 1.3745-40 region will shift the bias in favour of bearish traders.

The GBP/USD pair retreated around 50 pips from daily tops and was last seen hovering near the lower boundary of its daily trading range, just above mid-1.3700s.

The pair prolonged this week's rebound from the 100-day SMA support near the 1.3670-65 region and gained traction for the third consecutive session on Wednesday. The momentum pushed the GBP/USD pair to one-week tops and was exclusively sponsored by sustained US dollar selling through the first half of the trading action.

Bulls, however, struggled to capitalize on the move or find acceptance above the 1.3800 round-figure mark. As investors digested Tuesday's rather unimpressive US CPI report, a modest pickup in the US Treasury bond yields assisted the USD to rebound from three-week lows and prompted some selling around the GBP/USD pair.

Apart from this, concerns about a possible link between the AstraZeneca coronavirus vaccine and a rare blood clotting disorder further held the GBP bulls from placing fresh bets. Investors now seem worried that a temporary ban on the jab for the below 30 age group could delay the UK government's plan to reopen the economy.

Even from a technical perspective, the emergence of some selling at higher levels suggests that the positive move witnessed since the beginning of this week might have run out of steam. A subsequent slide below the 1.3745-40 region will reaffirm the negative bias and turn the GBP/USD pair vulnerable to slide further.

There isn't any major market-moving economic data due for release on Wednesday. Hence, the key focus will be on a scheduled speech by Fed Chair Jerome Powell later during the US session. This, along with the US bond yields, will influence the USD price dynamics and produce some short-term trading opportunities around the GBP/USD pair.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3762
Today Daily Change 0.0010
Today Daily Change % 0.07
Today daily open 1.3752
 
Trends
Daily SMA20 1.3797
Daily SMA50 1.3858
Daily SMA100 1.3694
Daily SMA200 1.3346
 
Levels
Previous Daily High 1.3769
Previous Daily Low 1.3694
Previous Weekly High 1.3919
Previous Weekly Low 1.367
Previous Monthly High 1.4017
Previous Monthly Low 1.3671
Daily Fibonacci 38.2% 1.374
Daily Fibonacci 61.8% 1.3723
Daily Pivot Point S1 1.3708
Daily Pivot Point S2 1.3664
Daily Pivot Point S3 1.3633
Daily Pivot Point R1 1.3782
Daily Pivot Point R2 1.3813
Daily Pivot Point R3 1.3856

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD recovers above 0.6750 after Australian jobs data

AUD/USD picks up a late bid and recovers above 0.6750 in Asian trading on Thursday, following the release of mixed Australian employment data. The extended post-Fed US Dollar recovery, amid a cautious market mood, could limit the pair's upside ahead of US data. 

AUD/USD News
USD.JPY jumps toward 144.00 on the road to recovery

USD.JPY jumps toward 144.00 on the road to recovery

USD/JPY gains traction and approaches 144.00 in Thursday's Asian session. The uptick of the pair is bolstered by the impressive US Dollar recovery. Investors shift their attention to the US data and the Bank of Japan interest rate decision on Friday. 

USD/JPY News
Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price remains on the defensive amid the post-FOMC USD recovery from YTD low

Gold price struggles to lure buyers despite the Fed’s jumbo interest rate cut on Wednesday. A further recovery in the US bond yields underpins the USD and caps the non-yielding metal. Concerns about an economic slowdown, along with geopolitical risks, help limit the downside.

Gold News
Ethereum attempts recovery following first rate cut in four years

Ethereum attempts recovery following first rate cut in four years

Ethereum is trading above $2,330 on Wednesday as the market is recovering following the Federal Reserve's decision to cut interest rates by 50 basis points. Meanwhile, Ethereum exchange-traded funds recorded $15.1 million in outflows.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures