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.

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