GBP/USD rises to fresh one-week highs near 1.3835


  • US dollar extends slide across the board during the American session.
  • Pound prints fresh highs versus dollar, euro, and yen.

The GBP/USD broke above 1.3800 and rose to 1.3833, the highest level since July 16. Cable is rising for the fourth time out of the last five trading days as it continues to recover from the five-month low it reached last week at 1.3571.

The rally pushed the pair back above the 20-day moving average on Monday. The main driver is a broad-based decline of the US dollar. The DXY is falling by 0.37%, under 92.55, even as US yields moved off lows.

US stocks are higher, with the Nasdaq hitting fresh record highs. The improvement in risk sentiment helped the pound that is up also versus the euro and the yen.

Eyes on the Fed

The economic calendar shows a quiet for the United Kingdom. “With little in the way of data, markets will likely focus on the virus numbers.  The response remains chaotic, with London Mayor Khan urging the Johnson government to relax isolation rules for any vaccinated people who come into contact with an infected person,” said analysts at Brown Brothers Harriman.

In the US, the key event will be the two-day FOMC meeting. Analysts at ANZ expect tapering discussions will step up in intensity. “These will focus on timing, speed, and composition. Recent comments from Chair Powell suggest the Fed is some months off an announcement on tapering.” They see the Fed holding onto the assessment of a strengthening economy and transitory inflation. “we don’t anticipate any change to its guidance on rates or asset purchases.”

Technical levels

GBP/USD

Overview
Today last price 1.3824
Today Daily Change 0.0077
Today Daily Change % 0.56
Today daily open 1.3747
 
Trends
Daily SMA20 1.3798
Daily SMA50 1.3973
Daily SMA100 1.3925
Daily SMA200 1.3714
 
Levels
Previous Daily High 1.378
Previous Daily Low 1.372
Previous Weekly High 1.3787
Previous Weekly Low 1.3572
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.3743
Daily Fibonacci 61.8% 1.3757
Daily Pivot Point S1 1.3718
Daily Pivot Point S2 1.3689
Daily Pivot Point S3 1.3658
Daily Pivot Point R1 1.3778
Daily Pivot Point R2 1.3809
Daily Pivot Point R3 1.3838

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.

EUR/USD News

GBP/USD: Bulls and bears will battle this out near the 61.8% golden ratio

The GBP/USD price has corrected 50% of the hourly bearish impulse. The bulls have been chipping away as profits are taken with bears moving aside one by one. This has resulted in a slow decelerating correction from which could attract sellers again. 

GBP/USD News

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.

EUR/USD News

Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures