- GBP/USD extended its recent recovery move from multi-decade lows amid weaker USD.
- A strong pickup in the US bond yields extended some support to the buck and capped gains.
- A surprisingly stronger US Durable Goods Orders report failed to provide any fresh impetus.
The GBP/USD pair trimmed a part of its early strong gains and has now retreated over 100 pips from one-week tops, set earlier this Wednesday.
A combination of supporting factors helped the pair to gain some strong follow-through traction for the second consecutive session on Wednesday and recover further from multi-decade lows.
On the other hand, the US dollar remained depressed for the fourth straight day in the wake of the Fed’s unprecedented action to buy unlimited amounts of Treasuries and mortgage-backed securities.
This coupled with the latest optimism over the US Senate’s agreement on the economic stimulus package dented the greenback’s perceived safe-haven status against its British counterpart.
However, a goodish pickup in the US Treasury bond yields helped limit the USD downside and kept a lid on the pair’s strong intraday positive move to the vicinity of the key 1.20 psychological mark.
Meanwhile, the US macro data, showing that headline Durable Goods Orders recorded an unexpected growth of 1.2% in February, failed to impress traders or provide any meaningful impetus.
Technical levels to watch
|Today last price||1.1872|
|Today Daily Change||0.0113|
|Today Daily Change %||0.96|
|Today daily open||1.1759|
|Previous Daily High||1.18|
|Previous Daily Low||1.1501|
|Previous Weekly High||1.24|
|Previous Weekly Low||1.1412|
|Previous Monthly High||1.3204|
|Previous Monthly Low||1.2726|
|Daily Fibonacci 38.2%||1.1685|
|Daily Fibonacci 61.8%||1.1615|
|Daily Pivot Point S1||1.1573|
|Daily Pivot Point S2||1.1388|
|Daily Pivot Point S3||1.1275|
|Daily Pivot Point R1||1.1872|
|Daily Pivot Point R2||1.1985|
|Daily Pivot Point R3||1.217|
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