• GBP/USD range-bounds during the New York session, directionless awaits for catalyst.
  • Strong UK employment figures could boost the British pound.
  • The US dollar index is flat, waits for US Inflation numbers.

GBP/USD is trading virtually unchanged on the day currently trading at 1.3831. Market sentiment remains upbeat, influencing commodity- currencies and weighing on the dollar, as investors focus on US inflation numbers.

The US dollar index that tracks the performance of the buck against a basket of currencies is at 92.66, up 0.04%. Meanwhile, the US 10-year Treasury yield is down two basis points (bps), lying at 1.322%, capping the US dollar index uptrend.

Market awaits UK employment and US inflation figures

On Tuesday, in the UK economic docket, the Claimant Count Change is expected to come at -71K, while the ILO Unemployment Rate is forecasted at 4.6%. If the reading is strong, it could give a push to the British pound. Last week, BoE’s Governor Andrew Bailey said that MPC members were split between policymakers who felt that conditions for a rate hike had been met and those who did not. Later in the week, the Office of National Statistics will reveal the inflation figures.

Meanwhile, across the pond, the CPI figures for August will be released on Tuesday. The US CPI is expected to come at 0.4%, while the CPI excluding energy and food number is foreseen at 0.3%. It will be interesting to see the impact of the last week’s high PPI readings. Data confirmed that the rising prices were fed by supply disruptions, consumer and producer goods shortages, and growing demand related to the pandemic. 

GBP/USD Price Forecast: Technical outlook

In the daily chart, the GBP/USD pair is trading beneath last week’s high, approaching the 200-day moving average (DMA) lying at 1.3821.  A sustained break under the latter would keep the bears in charge, exerting downward pressure on the pair, with the first key support area at 1.3800. Once that level is cleared, the bear’s next barriers levels would be the September 8 low at 1.3726, followed by the August 27 low at 1.3679.

On the flip side, if the pair bounces off the 200-DMA, it could lead towards higher prices. The first resistance level would be the 1.3900 figure. Once that level is breached, the subsequent supply zones would be the July 20 high at 1.3983, followed by 1.4000.

The Relative Strength Index is at 53.76 and flattish but, it is still above the mid-line supporting an upside bias.

GBP/USD

Overview
Today last price 1.3831
Today Daily Change -0.0005
Today Daily Change % -0.04
Today daily open 1.3836
 
Trends
Daily SMA20 1.3767
Daily SMA50 1.3807
Daily SMA100 1.3917
Daily SMA200 1.3825
 
Levels
Previous Daily High 1.3889
Previous Daily Low 1.3827
Previous Weekly High 1.3889
Previous Weekly Low 1.3726
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3865
Daily Fibonacci 61.8% 1.3851
Daily Pivot Point S1 1.3813
Daily Pivot Point S2 1.3789
Daily Pivot Point S3 1.3751
Daily Pivot Point R1 1.3874
Daily Pivot Point R2 1.3912
Daily Pivot Point R3 1.3936

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD: Dollar’s corrective decline soon to be over

The EUR/USD pair has recovered some ground after reaching a fresh 2021 low of 1.1523, finishing the week trading at around 1.1600. The American dollar gave up ground after the previous week´s sharp appreciation, although the shared currency was among its weakest rivals.

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

Gold sellers defend $1,800, all eyes on US T-bond yields

Gold started the week in a calm fashion and spent the first two trading days fluctuating in a tight range above $1,750. With the US Treasury bond yields falling sharply, however, XAU/USD gathered bullish momentum and gained nearly 2% on Wednesday.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

What is upsetting the US consumer?

For three months American consumers have told surveys they are unhappy. Not just mildly upset but suffering an attack of pessimism not seen in a decade.  Retail Sales in September wallop expectations for the second month in a row.

Read more

Forex MAJORS

Cryptocurrencies

Signatures