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

 

 

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.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD holds higher ground above 0.7300

AUD/USD extends gains above 0.7300 amid fresh US dollar selling across the board, as the market sentiment remains mixed starting out a fresh week.  PBOC's status-quo and the rally in copper prices bode well for the aussie. 

AUD/USD News

USD/JPY extends losses below 104.50 amid risk-aversion

USD/JPY resumes its decline towards 104.00 amid risk-off action in the Asian equities and broad dollar weakness. Markets in Tokyo are off for Respect-for-the-Aged Day, Focus shifts to the Fed Chair Powell's speech. 

USD/JPY News

Gold due for a breakout, according to key indicator

Gold's multi-week consolidation in a narrowing price range could end with a bullish breakout, as a widely-tracked daily chart indicator is about to turn bullish. The yellow metal has carved out a descending triangle pattern over the past four weeks.

Gold News

The week ahead: Central bankers’ chance to explain themselves

Global equities took another hit at the end of last week, and as we start a fresh week there is some concern that volatility could be creeping back into the markets and that tech has lost some of its lustre, along with gold, which also ended the week lower. 

Read more

WTI buyers attack $41.00 amid US-Iran tension, escalating virus woes

WTI remains heavy below 50-day SMA, drops from $41.18 to begin the week. The energy benchmark keeps trailing 50-day SMA for over two weeks while taking clues from the US-Iran tussle and the coronavirus (COVID-19) headlines. Hopes of further stimulus, China’s optimism favor energy bulls.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures