GBP/USD slides further below 1.3100 mark, fresh session lows


  • GBP/USD failed to capitalize on upbeat UK PMI-led positive move.
  • BoE rate cut speculations might have prompted some fresh selling.
  • Resurgent USD demand contributed to intraday slide of 100 pips.

The GBP/USD pair extended its intraday pullback from two-week tops and dropped to fresh session lows in the last hour, further below the 1.3100 mark.

The pair initially gained some positive traction and climbed to the highest level since January 7 following the release of mostly upbeat UK PMI prints. In fact, the gauge for the manufacturing sector rose to its strongest level since April and the services PMI jumped to its highest level since September 2018.

Pound witnesses an intraday turnaround

Friday's data added to the recent optimism and prompted investors to scale back their bets for an imminent BoE rate cut at its upcoming meeting on January 30. The pair touched an intraday high level of 1.3170 but failed to capitalize on the momentum, rather met with some fresh supply at higher levels.

The fact that the market is still pricing in 45% chances of a rate cut next week seemed to be one of the key factors behind the pair's turnaround. This coupled with some renewed US dollar buying interest added to the selling bias and contributed to the intraday downfall of around 100 pips.

It will now be interesting to see if the pair is able to attract any buying interest at lower levels or the current pullback marks the end of the recent positive move. Market participants now look forward to the release of the flash Manufacturing and Services PMI in order to grab some short-term trading opportunities.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3088
Today Daily Change -0.0032
Today Daily Change % -0.24
Today daily open 1.312
 
Trends
Daily SMA20 1.3092
Daily SMA50 1.3053
Daily SMA100 1.2831
Daily SMA200 1.2691
 
Levels
Previous Daily High 1.3152
Previous Daily Low 1.3097
Previous Weekly High 1.312
Previous Weekly Low 1.2954
Previous Monthly High 1.3515
Previous Monthly Low 1.2896
Daily Fibonacci 38.2% 1.3118
Daily Fibonacci 61.8% 1.3131
Daily Pivot Point S1 1.3094
Daily Pivot Point S2 1.3068
Daily Pivot Point S3 1.3039
Daily Pivot Point R1 1.3149
Daily Pivot Point R2 1.3178
Daily Pivot Point R3 1.3204

 

 

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