GBP/USD slides to session lows, back closer to 1.2900 mark


  • GBP/USD meets with some fresh supply and erodes a part of Friday’s positive move.
  • Fears of a no-deal Brexit kept a lid on any follow-through positive move for the GBP.
  • The prevailing risk-off mood benefitted the USD and added to the intraday selling bias.

The GBP/USD pair finally broke down of its Asian session consolidation phase and dropped to fresh session lows, around the 1.2915 region in the last hour.

The pair failed to capitalize on Friday's goodish intraday positive move of around 100-pips from the vicinity of YTD lows and came under some fresh selling pressure on the first day of a new trading week.

GBP/USD weighed down by a combination of factors

The pair remained capped below the key 1.30 psychological mark as investors refrained from placing bullish bets amid persistent fears that Britain might crash out of the European Union later this year.

This coupled with a fresh wave of the global risk-aversion trade provided a goodish lift to the US dollar’s perceived safe-haven status against its British counterpart and added to the intraday selling bias.

The risk-sentiment took a sharp knock on Monday in the wake of growing market concerns that the global economic growth could take a hit from the outbreak of the deadly coronavirus.

Market worries were further fueled by weekend reports, indicating a sharp rise in the number of confirmed coronavirus cases in the north of Italy, which led to a bearish gap opening on Monday.

Meanwhile, the risk-off mood-led slump in the US Treasury bond yields seemed to keep a lid on any runaway USD rally and might eventually help limit deeper losses, at least for the time being.

In absence of any major market-moving economic releases, either from the UK or the US, the incoming Brexit headlines will play a key role in influencing the sentiment surrounding the sterling.

This along with investors’ appetite for perceived riskier assets might provide some impetus and contribute towards producing some short-term trading opportunities on Monday.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2962
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.2962
 
Trends
Daily SMA20 1.2995
Daily SMA50 1.3045
Daily SMA100 1.2961
Daily SMA200 1.2695
 
Levels
Previous Daily High 1.2982
Previous Daily Low 1.2874
Previous Weekly High 1.3054
Previous Weekly Low 1.2849
Previous Monthly High 1.3281
Previous Monthly Low 1.2954
Daily Fibonacci 38.2% 1.2941
Daily Fibonacci 61.8% 1.2915
Daily Pivot Point S1 1.2897
Daily Pivot Point S2 1.2831
Daily Pivot Point S3 1.2789
Daily Pivot Point R1 1.3005
Daily Pivot Point R2 1.3047
Daily Pivot Point R3 1.3113

 

 

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