• The GBP/USD pair stalls at the 50-DMA retrace below 1.3700.
  • Risk-on market sentiment boosts the GBP undermines the greenback.
  • GBP/USD: The Relative Strength Index above 50, aiming higher, indicates that there could be a leg-up near 1.3800.

The GBP/USD retreats from the daily high around 1.3733, advances 0.20% during the New York session, trading at 1.3688 at the time of writing. The British pound could not hold to the 1.3700 level, broke the latter in a counter-trend move, which in 4-hours witnessed a 60 pip drop.

Risk-on market sentiment drives the market, portrayed by US equity indexes, posting gains between 1.47% and 1.82%.  Risk-sensitive currencies, like the AUD and the GBP, are greatly favored. Additionally,  the British pound had a boost over the weekend when Bank of England’s members expressed their interest in tackling rising inflation by hiking interest rates.

The greenback has been under selling pressure across the board, with the US Dollar Index that measures the buck’s performance against a basket of six currencies, slides 0.11%, clings to 93.97. Nevertheless, despite those factors, the US dollar trimmed some of its losses against the Sterling.

GBP/USD Price Forecast: Technical outlook

Daily chart

Despite the broad US dollar weakness, the Sterling advance stalled at the 50-day moving average, around 1.3716. The subsequent price action exerted downward pressure on the pair. Momentum indicators like the Relative Strenght Index (RSI) at 52 indicate that the GBP/USD pair might print another leg-up before resuming the downward trend, but firstly the pair will need a daily close above the 50-DMA.

In that outcome, the following leg-up could reach the 1.3800 figure, which confluences with the 78.6% Fibo retracements (from the September 14 pivot high to the September 29 pivot low), before resuming to the downside.

On the flip side, failure at 1.3700, could see the pair sliding towards the 1.3600 figure, followed immediately by the lows of the last five days, around 1.3570.

KEY ADDITIONAL LEVELS TO WATCH

GBP/USD

Overview
Today last price 1.3688
Today Daily Change 0.0028
Today Daily Change % 0.20
Today daily open 1.366
 
Trends
Daily SMA20 1.3623
Daily SMA50 1.3727
Daily SMA100 1.3829
Daily SMA200 1.3844
 
Levels
Previous Daily High 1.3665
Previous Daily Low 1.3576
Previous Weekly High 1.3659
Previous Weekly Low 1.3532
Previous Monthly High 1.3913
Previous Monthly Low 1.3412
Daily Fibonacci 38.2% 1.3631
Daily Fibonacci 61.8% 1.361
Daily Pivot Point S1 1.3602
Daily Pivot Point S2 1.3544
Daily Pivot Point S3 1.3513
Daily Pivot Point R1 1.3692
Daily Pivot Point R2 1.3723
Daily Pivot Point R3 1.3781

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures