GBP/USD slips below 1.2300 mark, fresh session lows


  • The post-ECB slump in the Euro boosted the USD and exerted some pressure.
  • Mixed US CPI figures did little to influence or provide any meaningful impetus.
  • Cross-driven strength seemed to help the downside, at least for the time being.

The GBP/USD pair finally broke down of its two-day-old consolidative trading range and weakened farther below the 1.2300 handle during the early North-American session.
 
With investors looking past the latest Brexit optimism, a sudden pick up in the US Dollar demand - primarily on the back of the post-ECB slump in the shared currency - turned out to be one of the key factors exerting some downward pressure on the major.

USD regains traction on dovish ECB

The greenback held on to its strong intraday gains back closer to multi-year tops and seemed unaffected by a sharp intraday free-fall in the US Treasury bond yields - further fueled by Thursday's rather unimpressive US consumer inflation figures.
 
Data released this Thursday showed that the headline US CPI 0.1% in August and the yearly rate unexpectedly ticked lower to 1.7% from 1.8% previous, which, to a larger extent, was negated by hotter-than-expected core CPI figures.
 
Despite the intraday pullback, some cross-driven strength - stemming out of the drop in the EUR/GBP cross to near three-month lows - helped the pair to defend 50-day SMA support, at least for the time being.
 
Hence, it will be prudent to wait for a strong follow-through selling before confirming that the recent rally has already run out of the steam and positioning for any further near-term depreciating move, possibly back towards the 1.2200 handle.

Technical levels to watch

GBP/USD

Overview
Today last price 1.2291
Today Daily Change -0.0039
Today Daily Change % -0.32
Today daily open 1.233
 
Trends
Daily SMA20 1.2215
Daily SMA50 1.2285
Daily SMA100 1.2527
Daily SMA200 1.2745
Levels
Previous Daily High 1.2372
Previous Daily Low 1.2312
Previous Weekly High 1.2354
Previous Weekly Low 1.1958
Previous Monthly High 1.231
Previous Monthly Low 1.2015
Daily Fibonacci 38.2% 1.2335
Daily Fibonacci 61.8% 1.2349
Daily Pivot Point S1 1.2304
Daily Pivot Point S2 1.2278
Daily Pivot Point S3 1.2244
Daily Pivot Point R1 1.2364
Daily Pivot Point R2 1.2398
Daily Pivot Point R3 1.2424

 

 

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