GBP/USD remains poised to slide below 1.4100, US CPI eyed


  • GBP/USD treads water in the Asian session.
  • US dollar remains steady and exerts pressure on the pair.
  • Brexit concerns, Delta strain added to the British pound struggle.

The appreciative move in the US dollar keeps GBP/USD off guard on Thursday’s Asian trading hours. The pair remains reluctant to shed the previous day's weakness and continues to make minute moves with no meaningful tractions.

At the time of writing, GBP/USD trades at 1.4114, down 0.03% for the day.

The US Dollar Index (DXY) gathers momentum in the early Asian session, as investors await the highly anticipated US Consumer Price Index (CPI) data. The US Treasury yields ease to a fresh three months low of 1.48%.

Investors remain cautious about the Fed tapering measures if the data comes in at the higher end. The higher interest rates could trigger a sell-off in Treasuries, and thus higher yields, eventually bumping up USD valuations.

On the other hand, the combination of factors weighs on the sterling's performance. The growing tensions between UK and EU, as the two sides failed to reach an agreement on implementing the Northern Ireland Protocol, impact the sterling negatively. The British Prime Minister Boris Johnson is considering all options amid an emerging trade war after Brussels threatens to impose sanctions over the UK's exports to NI.

Meanwhile, US President Joe Biden, who is in the UK to attend the G-7 meeting, warned PM Johnson and directed to resolve the NI issue with the EU.

In addition to that, the rising coronavirus cases amid the newly found Indian “Delta strain” put the UK government's full economy opening plan in dismay. 

As for now, investors are keeping a close watch on the US Core Consumer Price Index (CPI) report and Initial Jobless Claim to gain some fresh trading impetus.

GBP/USD additional levels

GBP/USD

Overview
Today last price 1.4115
Today Daily Change -0.0005
Today Daily Change % -0.04
Today daily open 1.412
 
Trends
Daily SMA20 1.4151
Daily SMA50 1.3989
Daily SMA100 1.3915
Daily SMA200 1.3564
 
Levels
Previous Daily High 1.4189
Previous Daily Low 1.411
Previous Weekly High 1.4249
Previous Weekly Low 1.4083
Previous Monthly High 1.4234
Previous Monthly Low 1.3801
Daily Fibonacci 38.2% 1.414
Daily Fibonacci 61.8% 1.4159
Daily Pivot Point S1 1.409
Daily Pivot Point S2 1.4061
Daily Pivot Point S3 1.4011
Daily Pivot Point R1 1.4169
Daily Pivot Point R2 1.4219
Daily Pivot Point R3 1.4248

 


 

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