GBP/USD tests last week highs near 1.2480 and retreats
- US dollar mixed on Tuesday, Wall Street modestly lower.
- GBP/USD holds near the 1.2400 area, as it has been the case since late Friday.
The GBP/USD rebounded further after the beginning of the American session and tested last week highs. It peaked at 1.2472 and then pulled back. As of writing, was trading at 1.2410/15, practically flat for the day.
The positive momentum eased after being unable to break above 1.2480 (last week high). The greenback was moving without a clear direction, like equity prices in Wall Street. The Dow Jones was falling 0.70%, but on the positive side, holding to most of it recent gains.
Data from the US showed an expected decline in Consumer Confidence and a reading of the Chicago PMI above expectations. Economic numbers continued to be ignored by market participants as the outlook remains critical. On Thursday jobless claims and on Friday the non-farm payroll report would likely be watched closely.
Negative month but far from the bottom
The GBP/USD pair is about to post the third monthly decline in a row, with a loss of around 400 pips. The close far from the lows is positive for the pound. Cable bottomed at 1.1409 and then rebounded more than a thousand pips. From a technical perspective, the negative for GBP is the slide under the 20-week moving average, while the positive is the rebound back above the 1.20/1.21 long-term support.
Technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
