GBP/USD struggles near two-week lows, just above 1.2800 handle


  • Thursday’s BoE MPC vote split continued weighing on the British Pound.
  • A subdued USD demand helped limit any further losses, at least for now.

The GBP/USD pair nursed the previous session's post-BoE losses to two-week lows, with bears still awaiting a sustained break below the 1.2800 round figure mark.
 
The pair added to its recent losses and witnessed some follow-through selling on Thursday in reaction to the BoE MPC's 7-2 vote split to keep interest rates unchanged at 0.75%. The outcome suggested that the BoE is poised to change its stance on monetary policy and kept exerting some pressure on the British Pound.

Downside remains limited

On the other hand, the US Dollar failed to capitalize on the overnight strong positive move to near one-month tops and was being weighed down by a modest pullback in the US Treasury bond yields amid conflicting trade-related headlines, which seemed to be the only factor that helped limit deeper losses for the major.
 
Officials on Thursday that China and the United States have agreed to roll back tariffs on each others' goods in a "phase one" trade deal if it is completed. However, reports suggested that the subject of rolling back tariffs faced fierce internal opposition in the White House and raised some scepticism about a trade deal.
 
Hence, it will be prudent to wait for some strong follow-through selling below the 1.2800-1.2790 region before traders start positioning for any further near-term depreciating move towards challenging the 1.2700 round-figure mark amid absent relevant market moving economic releases from the UK.
 
Later during the early North-American session, the US economic docket – highlighting the preliminary release of the Michigan Consumer Sentiment Index for November – will be looked upon for some short-term trading opportunities on the last day of the week.

Technical levels to watch

GBP/USD

Overview
Today last price 1.281
Today Daily Change -0.0005
Today Daily Change % -0.04
Today daily open 1.2815
 
Trends
Daily SMA20 1.2855
Daily SMA50 1.2543
Daily SMA100 1.2452
Daily SMA200 1.2707
 
Levels
Previous Daily High 1.2878
Previous Daily Low 1.2794
Previous Weekly High 1.2976
Previous Weekly Low 1.2804
Previous Monthly High 1.3013
Previous Monthly Low 1.2194
Daily Fibonacci 38.2% 1.2826
Daily Fibonacci 61.8% 1.2846
Daily Pivot Point S1 1.278
Daily Pivot Point S2 1.2745
Daily Pivot Point S3 1.2696
Daily Pivot Point R1 1.2864
Daily Pivot Point R2 1.2913
Daily Pivot Point R3 1.2948

 

 

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