GBP/USD slumps to weekly lows near 1.3050 as USD bulls wake up


  • Labour party spokesman denies reports Brexit talks have stalled.
  • The unemployment rate in the UK stays unchanged at 3.9% as expected.
  • US Dollar Index climbs above 97 in the NA session.

After spending the first half of the day a little below the 1.31 mark, the GBP/USD pair came under a renewed selling pressure and touched its lowest level in a week at 1.3044. As of writing, the pair was down 0.35% on a daily basis at 1.3051.

Earlier in the day, several news outlets claimed that Brexit talks with the Labour party and the government had hit another stalemate to weigh on the British pound. Although the Labour party's spokesman didn't take long to deny these reports, the currency struggled to gain traction.

Meanwhile, today's data from the UK showed that the 3-month ILO unemployment report stayed unchanged at 3.9% in February. However, the claimant count change came in at 28.3K, worse than the market expectation of 20K.

In addition to the GBP's weakness, the greenback started to gather strength in the NA session and with the US Dollar Index rising above 97 after failing to do so on Monday and forced the pair to continue to push lower. Nevertheless, in the absence of fundamental drivers, the DXY's recent upsurge seems to be technical in nature, suggesting that it could have a difficult time gathering momentum.

On Wednesday, the Consumer Price Index, Producer Price Index, and Retail Price Index from the UK will be looked upon for fresh impetus.

Technical levels to consider

GBP/USD

Overview
Today last price 1.3051
Today Daily Change -0.0046
Today Daily Change % -0.35
Today daily open 1.3097
 
Trends
Daily SMA20 1.312
Daily SMA50 1.3094
Daily SMA100 1.2946
Daily SMA200 1.2971
Levels
Previous Daily High 1.312
Previous Daily Low 1.3069
Previous Weekly High 1.3133
Previous Weekly Low 1.303
Previous Monthly High 1.3384
Previous Monthly Low 1.296
Daily Fibonacci 38.2% 1.31
Daily Fibonacci 61.8% 1.3088
Daily Pivot Point S1 1.3071
Daily Pivot Point S2 1.3044
Daily Pivot Point S3 1.302
Daily Pivot Point R1 1.3121
Daily Pivot Point R2 1.3146
Daily Pivot Point R3 1.3172

 

 

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