GBP/USD reverses and drops to test 1.2600

Cable reverses as the US Dollar rebounds from weekly lows.
Wall Street drops sharply, volatility soars, and gold declines to $1800/oz.

Matías Salord FXStreet

The GBP/USD pair is still positive for the day, on its way to the fifth consecutive daily gains but it moved off highs. Earlier on Thursday, it climbed to 1.2669, the highest level in three weeks but then turned to the downside, falling to 1.2599, matching the Asian session low.

As of writing, GBP/USD trades at 1.2625/30, modestly higher for the day. Cable pulled back amid a stronger US dollar. The greenback rose across the board as equity price sin Wall Street turned sharply to the downside after the US Supreme Court ruled that President Trump cannot block the release of his financial records to prosecutors.

US stocks turned to the downside and US yields move lower. The greenback rose particularly gains commodity currencies. The DXY bounced from four-week lows to 96.70. US data released showed initial jobless claims came in better-than-expected at 1.31 million. The numbers have no impact on the US dollar.

Levels to watch

The GBP/USD holds a constructive set up but the bullish momentum eased after the recent correction. The immediate support is seen at 1.2595, followed by 1.2560. A break under 1.2530 could negate the bullish bias. On the upside, resistance is seen at 1.2630 (horizontal level and 20-hour moving average) and 1.2665.

GBP/USD

Overview
Today last price	1.261
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.261

Trends
Daily SMA20	1.2479
Daily SMA50	1.2429
Daily SMA100	1.2443
Daily SMA200	1.2696

Levels
Previous Daily High	1.2623
Previous Daily Low	1.2509
Previous Weekly High	1.253
Previous Weekly Low	1.2252
Previous Monthly High	1.2813
Previous Monthly Low	1.2252
Daily Fibonacci 38.2%	1.2579
Daily Fibonacci 61.8%	1.2552
Daily Pivot Point S1	1.2538
Daily Pivot Point S2	1.2466
Daily Pivot Point S3	1.2424
Daily Pivot Point R1	1.2653
Daily Pivot Point R2	1.2695
Daily Pivot Point R3	1.2767

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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