• GBP/USD met with some fresh supply on Wednesday and refreshed monthly lows.
  • Bulls seemed unimpressed by a subdued USD price action amid the risk-on impulse.
  • Some cross-driven weakness stemming from EUR/GBP weighed on the British pound.

The GBP/USD pair broke down of its intraday consolidative trading range and dropped to one-month lows, around the 1.3635-30 region during the first half of the European session.

The pair struggled to capitalize on its modest uptick, instead met with some fresh supply near the 1.3675-80 region and failed to benefit from a subdued US dollar price action. The risk-on impulse in the markets held traders from placing any aggressive bullish bets around the safe-haven greenback.

The global risk sentiment got a lift after China's struggling property giant Evergrande said it would pay the bond interest due on Thursday. That said, expectations for an imminent Fed taper announcement, along with a modest uptick in the US Treasury bond yields acting as a tailwind for the greenback.

Hence, the downtick could be solely attributed to some repositioning trade ahead of the crucial FOMC policy decision, scheduled to be announced later this Wednesday. Investors will look for clues about the likely timing of the Fed's tapering plan before placing fresh directional bets.

Meanwhile, some cross-driven weakness stemming from a fresh leg up in the EUR/GBP cross further contributed to the GBP/USD pair's intraday decline. This marks the fourth day of a negative move in the previous five sessions and might have already set the stage for further losses.

From current levels, the 1.3600 round-figure mark testing in August seems to protect the immediate downside ahead of YTD lows, around the 1.3570 region. Some follow-through selling should pave the way for a slide to the key 1.3500 psychological mark heading into the BoE meeting on Thursday.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3638
Today Daily Change -0.0023
Today Daily Change % -0.17
Today daily open 1.3661
 
Trends
Daily SMA20 1.3781
Daily SMA50 1.3797
Daily SMA100 1.3908
Daily SMA200 1.384
 
Levels
Previous Daily High 1.3693
Previous Daily Low 1.3641
Previous Weekly High 1.3913
Previous Weekly Low 1.3728
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.3673
Daily Fibonacci 61.8% 1.3661
Daily Pivot Point S1 1.3637
Daily Pivot Point S2 1.3613
Daily Pivot Point S3 1.3585
Daily Pivot Point R1 1.3689
Daily Pivot Point R2 1.3717
Daily Pivot Point R3 1.3741

 

 

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 turns south towards 1.0150 ahead of EU GDP, Fed minutes

EUR/USD turns south towards 1.0150 ahead of EU GDP, Fed minutes

EUR/USD has come under renewed selling pressure below 1.0200 amid broad risk-aversion. The US dollar rebounds ahead of Fed minutes while the euro awaits Eurozone GDP. The shared currency remains weighed down by recession fears and gas crises.

EUR/USD News

GBP/USD drops below 1.2100 amid risk-aversion

GBP/USD drops below 1.2100 amid risk-aversion

GBP/USD is falling below 1.2100 in the European session on Wednesday as investors assess the implications of surging UK inflation on the BOE's next policy move. The US dollar finds demand amid souring risk sentiment ahead of US data and Fed minutes. 

GBP/USD News

Gold’s battle with 50 DMA extends ahead of Fed minutes

Gold’s battle with 50 DMA extends ahead of Fed minutes

Gold price rebounds from weekly lows as the USD resumes correction. US Treasury yields are struggling to find demand ahead of the Fed minutes. XAU/USD needs acceptance above 50 DMA to sustain the recovery.  

Gold News

Solana price hints at a 50% upswing under these specific conditions

Solana price hints at a 50% upswing under these specific conditions

Solana price shows an interesting setup as it tries to overcome a stiff resistance level. The fifth attempt to overcome hurdles will likely be successful due to multiple bullish confluences. Solana price has been on a clear uptrend since producing the June 14 swing low at $25.76.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures