GBP/USD steadies near 1.2150, stays on track to post weekly gains

GBP/USD continues to trade in positive territory at around 1.2150.
US Dollar stays on the back foot after UoM Consumer Sentiment Survey.
The pair remains on track to post weekly gains.

Eren Sengezer FXStreet

GBP/USD declined toward 1.2100 during the European trading hours but regained its traction amid renewed US Dollar (USD) weakness. The pair seems to have stabilized at around 1.2150 in the American session and remains on track to end the week in positive territory.

Plunging US yields weigh on USD

Despite the negative shift witnessed in risk sentiment, the USD is having a difficult time finding demand ahead of the weekend. The benchmark 10-year US Treasury bond yield is down nearly 5% on the day at around 3.4%, forcing the US Dollar Index (DXY) to stay in the red near 104.00.

The data published by the University of Michigan (UoM) revealed on Friday that the Consumer Confidence Index declined to 63.4 in early March from 67 in February. More importantly, "year-ahead inflation expectations receded from 4.1% in February to 3.8%, the lowest reading since April 2021," UoM Surveys of Consumers Director, Joanne Hsu, said.

Ahead of next week's critical Federal Reserve policy meeting, this report seems to be causing investors to reassess their positions. According to the CME Group FedWatch Tool, the probability of a 25 basis points Fed rate hike next week currently stands at 68%, down from nearly 80% earlier in the day.

Technical levels to watch for

GBP/USD

Overview
Today last price	1.2148
Today Daily Change	0.0039
Today Daily Change %	0.32
Today daily open	1.2109

Trends
Daily SMA20	1.2022
Daily SMA50	1.2139
Daily SMA100	1.2043
Daily SMA200	1.1892

Levels
Previous Daily High	1.2128
Previous Daily Low	1.2027
Previous Weekly High	1.2114
Previous Weekly Low	1.1803
Previous Monthly High	1.2402
Previous Monthly Low	1.1915
Daily Fibonacci 38.2%	1.2089
Daily Fibonacci 61.8%	1.2066
Daily Pivot Point S1	1.2048
Daily Pivot Point S2	1.1988
Daily Pivot Point S3	1.1948
Daily Pivot Point R1	1.2149
Daily Pivot Point R2	1.2189
Daily Pivot Point R3	1.225

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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