• GBP/USD staged modest recovery from the lowest level since November 2020 touched on Friday.
  • Stability in the equity markets, retreating US bond yields undermined the USD and extended support.
  • Mostly upbeat UK macro data failed to impress bulls amid worries about the Russia-Ukraine conflict.

The GBP/USD pair traded with a mild positive bias through the early European session and might now be looking to build on the intraday gains beyond the 1.3100 round-figure mark.

The pair reversed an early dip to the 1.3070-1.3065 area, or the lowest level since November 2020, though the uptick lacked bullish conviction or strong follow-through buying. Signs of stability in the equity markets, along with modest pullback in the US Treasury bond yields kept the US dollar bulls on the defensive. This, in turn, was seen as a key factor that assisted the GBP/USD pair to attract some buying on the last day of the week.

The British pound drew additional support from better-than-expected UK monthly GDP report, which came in to show that the economy expanded by 0.8% in January as against 0.2% anticipated. Adding to this, Industrial and Manufacturing Production recorded a monthly growth of 0.7% and 0.8%, respectively, both surpassing expectations. The data reaffirm expectations that the Bank of England will go ahead and hike interest rates at the upcoming meeting.

That said, growing market worries about the worsening situation in Ukraine and the risk of a further escalation in the conflict between Russia and Western powers capped any optimistic move in the markets. This, along with Thursday's strong US CPI print, acted as a tailwind for the greenback and kept a lid on any meaningful recovery for the GBP/USD pair. Hence, it will be prudent to wait for some follow-through buying before placing fresh bullish bets.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3094
Today Daily Change 0.0010
Today Daily Change % 0.08
Today daily open 1.3084
 
Trends
Daily SMA20 1.3408
Daily SMA50 1.3495
Daily SMA100 1.346
Daily SMA200 1.3632
 
Levels
Previous Daily High 1.3195
Previous Daily Low 1.3083
Previous Weekly High 1.3438
Previous Weekly Low 1.3202
Previous Monthly High 1.3644
Previous Monthly Low 1.3273
Daily Fibonacci 38.2% 1.3126
Daily Fibonacci 61.8% 1.3152
Daily Pivot Point S1 1.3047
Daily Pivot Point S2 1.3009
Daily Pivot Point S3 1.2935
Daily Pivot Point R1 1.3158
Daily Pivot Point R2 1.3232
Daily Pivot Point R3 1.327

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD drops back below 0.9700 as yields rebound ahead of US GDP, German inflation

EUR/USD sellers are up and roaring as sour sentiment joins firmer yields to renew the downside during early Thursday, after a day full of surprises and positive performance. Germany’s HICP may not impress pair buyers unless US GDP disappoints.

EUR/USD News

GBP/USD turns sideways around 1.0800, focus shifts to US/UK GDP data

GBP/USD turns sideways around 1.0800, focus shifts to US/UK GDP data

GBP/USD is expected to resume its upside journey after concluding its correction to near 1.0800. To revive UK’s financial stability, the BOE announced a bond-buying program worth GBP 65 billion. Does BOE really not have the stomach to fight inflation while simultaneously keeping financial stability?

GBP/USD News

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold sees cushion around $1,650 after a corrective move, US GDP buzz

Gold price is experiencing a healthy correction in the Tokyo session after witnessing a bumper rally. The precious metal is expected to find significant bids around the immediate cushion of $1,650.00 as the downside bias is not backed by momentum. 

Gold News

XRP: A checklist for the next rally

XRP: A checklist for the next rally

XRP price has shown incredible buying pressure after a dip into the $0.381 to $0.433 demand zone. A recovery above $0.464 could ignite the next run-up, but ideally, a retest of $0.397 could be a good place to be a bull.

Read more

A week after Japanese yen intervention

A week after Japanese yen intervention

Last Thursday was an incredibly volatile trading session for the USD/JPY. This volatility was largely caused by the Bank of Japan's (BoJ) intervention in the currency markets to defend its depreciating currency, the Japanese Yen. Last week’s move was the first time since 1998 that the BoJ had intervened.

Read more

Forex MAJORS

Cryptocurrencies

Signatures