GBP/USD slides further below 1.4100 mark, four-week lows

GBP/USD drifted lower for the third consecutive session on Thursday.
Brexit/COVID-19 jitters continued acting as a headwind for the sterling.
A modest USD strength further contributed to the intraday selling bias.
Technical selling below the 1.4100 mark aggravated the bearish slide.

Haresh Menghani FXStreet

The GBP/USD pair witnessed some heavy selling during the early European session and dived to four-week lows, around the 1.4075-70 region in the last hour.

Following a brief consolidation through the first half of the trading action on Thursday, the pair met with some fresh supply and extended the previous day's fall from the vicinity of the 1.4200 mark. The British pound continues to be weighed down by the EU-UK collision over Norther Ireland protocol and talks that further easing of lockdown measures in the UK may be postponed.

Talks between UK Brexit Minister David Frost and European Commission vice-president Maros Sefcovic to resolve differences over the Brexit deal broke up without a breakthrough on Wednesday. In a further escalation of a dispute over the Northern Ireland protocol, the European Union warned of swift and firm action if the UK fails to implement its post-Brexit obligations.

This comes on the back of speculations that the UK may delay plans to end restrictions fully on June 21 in light of the spread of the so-called Delta variant. The combination of factors continued acting as a headwind for the sterling. This, along with a modest US dollar strength, exerted some downward pressure on the GBP/USD pair and contributed to the ongoing decline.

Meanwhile, the latest leg of a sudden drop over the past hour or so could be attributed to some technical selling below the 1.4100 mark. A subsequent fall below the monthly swing lows, around the 1.4080 region might have already set the stage for additional weakness. That said, investors might refrain from placing fresh bets ahead of the US consumer inflation figures.

Technical levels to watch

GBP/USD

Overview
Today last price	1.4084
Today Daily Change	-0.0036
Today Daily Change %	-0.25
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

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.