GBP/USD rises above 1.3850 after disappointing US consumer confidence data

GBP/USD extends daily rebound during the American trading hours.
Consumer confidence in US weakened significantly in August.
US Dollar Index drops toward 92.50 after disappointing sentiment data.

Eren Sengezer FXStreet

Following a consolidation phase around 1.3800 during the European trading hours on Friday, the GBP/USD pair gained traction and extended its daily rebound in the American session. As of writing, the pair was up 0.35% on the day at 1.3851.

DXY pushes lower on dismal sentiment report

The renewed USD weakness on disappointing consumer confidence data from the US seems to be fueling GBP/USD's upside.

The University of Michigan announced on Friday that the Consumer Sentiment Index declined to its lowest level since December 2011 at 70.2 in August. Additionally, the Consumers Current Conditions Index dropped to 77.9 from 84.5 in June. Reflecting the negative impact of this report on the greenback, the US Dollar Index is losing 0.45% at 92.56.

In the meantime, the benchmark 10-year US Treasury bond yield is down more than 3% on Friday, putting additional weight on the USD.

There won't be any other data releases from the US in the remainder of the day and the pair remains on track to close the week in the negative territory despite the latest rebound.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.3845
Today Daily Change	0.0037
Today Daily Change %	0.27
Today daily open	1.3808

Trends
Daily SMA20	1.3831
Daily SMA50	1.3895
Daily SMA100	1.3926
Daily SMA200	1.3775

Levels
Previous Daily High	1.3879
Previous Daily Low	1.3795
Previous Weekly High	1.3958
Previous Weekly Low	1.3861
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3827
Daily Fibonacci 61.8%	1.3847
Daily Pivot Point S1	1.3775
Daily Pivot Point S2	1.3743
Daily Pivot Point S3	1.3692
Daily Pivot Point R1	1.3859
Daily Pivot Point R2	1.3911
Daily Pivot Point R3	1.3943

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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