GBP/USD retreats over 100 pips from 1-week tops, still well bid above mid-1.1800s


  • 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.

The sterling remained well supported by the UK's stricter lockdown measures to combat the COVID-19 pandemic and got an additional boost from Wednesday’s mostly in line UK CPI inflation figures.

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

GBP/USD

Overview
Today last price 1.1872
Today Daily Change 0.0113
Today Daily Change % 0.96
Today daily open 1.1759
 
Trends
Daily SMA20 1.2456
Daily SMA50 1.2789
Daily SMA100 1.2905
Daily SMA200 1.2677
 
Levels
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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