GBP/USD slides back closer to session lows, around 1.3070-65 region


  • GBP/USD failed to capitalize on its intraday positive move to levels beyond the 1.3100 mark.
  • The early uptick was sponsored by the emergence of some fresh selling around the greenback.
  • Persistent Brexit uncertainties kept a lid on any strong gains, rather exerted some pressure.

The GBP/USD pair retreated around 50 pips from the European session swing highs to levels beyond the 1.3100 mark and has now dropped back to the lower end of its daily trading range.

The emergence of some fresh selling around the US dollar assisted the pair to regain some positive traction during the first half of the trading action on the last day of the week. However, persistent Brexit-related uncertainties kept a lid on any further gains, instead prompted some fresh selling at higher levels and dragged the GBP/USD pair into the negative territory for the second straight session.

As investors awaited developments surrounding the next round of the US fiscal stimulus measures, the optimism over the first approved treatment for COVID-19 boosted investors' confidence and undermined the greenback's safe-haven status. Adding to this, expectations of a strong Democratic victory in the US elections exerted some additional downward pressure on the buck and provided a minor lift to the GBP/USD pair.

The UK and EU were reported to have made some progress on competition guarantees, including state aid rules. However, fishing remains a key sticking point. The UK Prime Minister Boris Johnson has insisted on taking back control over its waters, while the EU wants access to the fishing waters. The fact that the UK is struggling to agree on a deal with the EU seemed to be the only factor weighing on the GBP/USD pair.

Apart from this, the imposition of fresh lockdown measures, to curb the second wave of coronavirus infections in the UK, further held the GBP bulls from placing any aggressive bets, instead prompted some selling around the GBP/USD pair. However, the downside remains limited, at least for the time being, as investors eagerly await fresh Brexit updates before positioning for the next leg of a directional move.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3068
Today Daily Change -0.0014
Today Daily Change % -0.11
Today daily open 1.3082
 
Trends
Daily SMA20 1.2946
Daily SMA50 1.3015
Daily SMA100 1.2856
Daily SMA200 1.271
 
Levels
Previous Daily High 1.3154
Previous Daily Low 1.3071
Previous Weekly High 1.3083
Previous Weekly Low 1.2863
Previous Monthly High 1.3482
Previous Monthly Low 1.2676
Daily Fibonacci 38.2% 1.3102
Daily Fibonacci 61.8% 1.3122
Daily Pivot Point S1 1.3051
Daily Pivot Point S2 1.3019
Daily Pivot Point S3 1.2968
Daily Pivot Point R1 1.3134
Daily Pivot Point R2 1.3185
Daily Pivot Point R3 1.3217

 

 

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