GBP/USD struggling to hold above 1.3315 after retreating from 1.3400


  • GBP/USD rejected at 1.3400, dives to session lows below 1.3300.
  • The pound struggles to hold at multi-month highs as the US dollar picks up.
  • GBP/USD may challenge 1.3482 – CitiBank.

Sterling’s reversal from 1.3400 area, its highest level since early September, has been contained at 1.3265, and the pair is attempting to consolidate at multi-month highs past 1.3315.

Brexit hopes and COVID-19 vaccine support the GBP

The pound accelerated its uptrend from mid-November lows at 1.3100 on Monday’s early trade, breaking through November’s peak at 1.3315. The promising results of the trials of AstraZeneca’s COVID-19 vaccine and renewed hopes of a Brexit deal with the EU have fuelled pound's demand during the London trading session.

The upbeat UK Flash PMIs, which advanced a shorter than expected contraction in November, and a weak USD, weighed by hopes od further monetary easing by the Federal Reserve, have contributed to extend pound’s bullish momentum

The rally, however, was halted right above 1.3400 and the pair plunged beyond 100 pips during the US trading session, amid a strong dollar recovery. The upbeat preliminary US PMI figures, anticipating a better-than-expected performance of the manufacturing and the services sectors in November have increased confidence in the US economy, boosting demand for the USD.

GBP/USD may challenge 1.3482 – CitiBank

From a wider perspective, The FX analysis team at CitiBank remains optimistic about the mid-term outlook for the pound, pointing out to the 1.3482 target: “Going forward, widespread distribution of a vaccine, and an agreement on a Brexit deal can support GBP. Global economic recovery in 2021 as a result of a vaccine could see the UK begin to catchup. This also reduces the probability of the MPC moving policy rates into negative territory (…) GBPUSD found support at 100dMA. The pair may challenge 1.3482, with support at 1.2982.”

Technical levels to watch

GBP/USD

Overview
Today last price 1.3331
Today Daily Change 0.0038
Today Daily Change % 0.29
Today daily open 1.3293
 
Trends
Daily SMA20 1.3119
Daily SMA50 1.2999
Daily SMA100 1.2982
Daily SMA200 1.2719
 
Levels
Previous Daily High 1.3298
Previous Daily Low 1.3247
Previous Weekly High 1.3312
Previous Weekly Low 1.3166
Previous Monthly High 1.3177
Previous Monthly Low 1.282
Daily Fibonacci 38.2% 1.3278
Daily Fibonacci 61.8% 1.3266
Daily Pivot Point S1 1.3261
Daily Pivot Point S2 1.3228
Daily Pivot Point S3 1.321
Daily Pivot Point R1 1.3312
Daily Pivot Point R2 1.333
Daily Pivot Point R3 1.3362

 

 

 

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