GBP/USD slides to 4-week low on US dollar strength, eyes 1.3600

The cable slides to 1.3652, investors eye the 1.3600 level
GBP/USD advances on a scarce UK calendar, broad dollar's strength.
US Jobless Claims data improved to 348K vs 363K expected by economists.

Christian Borjon Valencia FXStreet

The British pound is down 0.59% at 1.3672. Earlier in the American session, the GBP/USD reached a new 4-week low at 1.3652 but retraced the move to around 1.3660.

A scarce UK’s economic calendar and Federal Reserve taper talks news are weighing on the pair. Adding to this, the US labor market gives signs of improving. The number of initial jobless claims in the United States for the last week slashed 29,000 week-over-week to stand at 348,000, lower than market expectations of 363,000.

Regardings US dollar strength, the US dollar index trades around 93.40 for a 0.25%, thus reinforcing news of recent dollar strength towards the end of the week.

In the calendar’s ahead, in the UK docket is the GfK consumer confidence for the month of August foreseen at -8 due at 18:01 GMT, followed by the Retail Sales YoY and MoM, expected at 6% and 0.4%, respectively. In the US dockets, remains empty going towards the weekend.

GBP/USD technical outlook

The cable is at 1.3675. The moving averages are above 1.3780, with the 200-day moving average, below the 100 and the 50-daily moving averages. The volatility in the pair surpassed the Average True Range readings and could be near reaching its bottom. For the pair to continue downwards will need a break of 1.3650, followed by 1.3600, and July 20 low at 1.3571.

RSI is 36.62 headed towards oversold levels while the Average True Range is steady at 74 pips.

GBP/USD

Overview
Today last price	1.3672
Today Daily Change	-0.0083
Today Daily Change %	-0.60
Today daily open	1.3755

Trends
Daily SMA20	1.3852
Daily SMA50	1.3866
Daily SMA100	1.3928
Daily SMA200	1.3787

Levels
Previous Daily High	1.3786
Previous Daily Low	1.3731
Previous Weekly High	1.3894
Previous Weekly Low	1.3791
Previous Monthly High	1.3984
Previous Monthly Low	1.3572
Daily Fibonacci 38.2%	1.3765
Daily Fibonacci 61.8%	1.3752
Daily Pivot Point S1	1.3728
Daily Pivot Point S2	1.3702
Daily Pivot Point S3	1.3673
Daily Pivot Point R1	1.3784
Daily Pivot Point R2	1.3813
Daily Pivot Point R3	1.3839

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD struggles for direction around 1.1650

EUR/USD gyrates around the 1.1650 region amid the absence of clear direction and following an earlier drop to the 1.630 area. The pair’s vacillating mood comes in response to the equally irresolute price action in the US Dollar as investors warm up for the release of the NFP Annual Revision and the speech by the Fed’s Warsh at the Jackson Hole Symposium, both events due on Friday.

Gold recovers $4,600, buyers unwilling to give up

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Ripple rebounds as whales accumulate 460 million XRP

Ripple (XRP) holds above $1.40 support on Wednesday, as bulls return to take control following three consecutive days of declines. The remittance token’s upside appears capped at $1.50 while extended gains would face additional resistance at $1.70. A break above $2.00 would mark a potential regime shift from bearish to bullish.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.