- Fresh USD buying, Brexit backstop uncertainty drags the Cable lower.
- A breach of hourly 100-SMA at 1.2602 opens the floor for further downside.
- USD bulls await US retail sales data for further trading momentum.
The GBP/USD pair came under heavy selling pressure on a breach of the hourly 100-SMA support placed at 1.2602 and now prints fresh two-day lows at 1.2570, as the bears regain poise amid resurgent US dollar demand across its main competitors.
The bid tone around the US dollar keeps growing bigger in the European session, largely on the back of a sharp fall in the EUR/USD pair to the 1.13 handle after weak French, Eurozone and German manufacturing PMI readings that confirm ECB”s concerns on the economic outlook.
Further, looming uncertainty over the Irish border backstop and the latest comments by the UK PM Theresa May’s Deputy David Lidington collaborates to the bearish tone around the Cable.
In the day ahead, the bulls could be rescued only by the disappointing US retail sales data due later in the NA session at 1330 GMT. Until then, the USD dynamics and broader market sentiment will continue to drive the GBP/USD price-action.
GBP/USD Technical Levels
GBP/USD
Overview:
Today Last Price: 1.2574
Today Daily change: -91 pips
Today Daily change %: -0.719%
Today Daily Open: 1.2665
Trends:
Previous Daily SMA20: 1.2746
Previous Daily SMA50: 1.29
Previous Daily SMA100: 1.2937
Previous Daily SMA200: 1.3263
Levels:
Previous Daily High: 1.2688
Previous Daily Low: 1.2593
Previous Weekly High: 1.284
Previous Weekly Low: 1.2659
Previous Monthly High: 1.3176
Previous Monthly Low: 1.2723
Previous Daily Fibonacci 38.2%: 1.2629
Previous Daily Fibonacci 61.8%: 1.2651
Previous Daily Pivot Point S1: 1.2609
Previous Daily Pivot Point S2: 1.2554
Previous Daily Pivot Point S3: 1.2515
Previous Daily Pivot Point R1: 1.2704
Previous Daily Pivot Point R2: 1.2743
Previous Daily Pivot Point R3: 1.2798
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.
Recommended content
Editors’ Picks
EUR/USD fluctuates near 1.0700 after US data
EUR/USD stays in a consolidation phase at around 1.0700 in the American session on Wednesday. The data from the US showed a strong increase in Durable Goods Orders, supporting the USD and making it difficult for the pair to gain traction.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.