GBP/USD rises to fresh 3-week highs as US Dollar tumbles on Trump’s tweets


  • US Dollar drops sharply across the board amid expectations of US President Trump announcement. 
  • Cable gains momentum and hits news highs for the current month. 

The GBP/USD pair moved quietly for hours, ignoring Powell and also the new Chinese tariffs of US products but recently it reacted to the big decline of the greenback. Cable is moving toward 1.2300, trading at 1.2276, the highest since late July.  

Trump moves markets 

The US Dollar was already weak against majors following new Chinese tariffs to US products and also from comments coming from Jackson Hole, that included Fed’s Powell. Now market participants are expecting a new announcement from US President Trump. He recently tweeted: “....My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?”. He criticized again the Fed and previous trade policy with China. Later added he will respond to China’s tariffs this afternoon. 

The DXY extended losses while at the same time Gold gained more than $30 from the lows. The GBP/USD pair holds a bullish tone, despite the decline in equity prices in Wall Street, supported by US Dollar weakness. 

Levels to watch 

On the upside, the next resistance is seen around 1.2290 followed by 1.2330 and 1.2380 (Jul 17 low). On the flip side, support levels might now be seen at 1.2240, 1.2190 (July 23 low) and 1.2110. Volatility is likely to remain elevated over the next hours until the close expecting Trump’s announcement and also following speeches from key central bankers in Jackson Hole. 

GBP/USD

Overview
Today last price 1.2276
Today Daily Change 0.0023
Today Daily Change % 0.19
Today daily open 1.2253
 
Trends
Daily SMA20 1.2146
Daily SMA50 1.2399
Daily SMA100 1.2637
Daily SMA200 1.2783
Levels
Previous Daily High 1.2273
Previous Daily Low 1.2108
Previous Weekly High 1.2176
Previous Weekly Low 1.2015
Previous Monthly High 1.2706
Previous Monthly Low 1.2119
Daily Fibonacci 38.2% 1.221
Daily Fibonacci 61.8% 1.2171
Daily Pivot Point S1 1.215
Daily Pivot Point S2 1.2046
Daily Pivot Point S3 1.1984
Daily Pivot Point R1 1.2315
Daily Pivot Point R2 1.2377
Daily Pivot Point R3 1.248

 

 

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