• GBP/USD gained some positive traction on Wednesday amid a modest USD weakness.
  • The prevalent risk-on mood, retreating US bond yields weighed on the safe-haven USD.
  • Hawkish Fed expectations should help limit the USD fall and cap the upside for the pair.

The GBP/USD pair traded with a mild positive bias heading into the European session and was last seen hovering around mid-1.3200s, up only 0.10% for the day.

Having found some support ahead of the 1.3200 mark on Tuesday, the GBP/USD pair managed to regain some positive traction on Tuesday and was supported by a modest US dollar weakness. Against the backdrop of the upbeat market mood, retreating US Treasury bond yields acted as a headwind for the safe-haven greenback and extended some support to the major.

The global risk sentiment remained well supported by easing concerns about the negative impact of the new coronavirus variant on the economic recovery. This comes on the back of reports, indicating that indicated that Omicron patients had only shown mild symptoms. This led to a strong rally in the global equity markets over the past two trading sessions.

That said, rising geopolitical tensions kept a lid on the recent optimistic moves, which along with the prospects for a faster policy tightening by the Fed should help limit the USD losses. Apart from this, the UK-EU impasse over the Northern Ireland Protocol held back traders from placing aggressive bullish bets and capped gains for the GBP/USD pair.

Investors seem convinced that the Fed would be forced to adopt a more aggressive policy response to contain stubbornly high inflation. Hence, the market focus will remain glued to the release of the latest US CPI report on Friday, which will influence the near-term USD price dynamics and provide a fresh directional impetus to the GBP/USD pair.

In the meantime, the broader market risk sentiment and the USD price dynamics would play a key role in driving the USD and provide some trading opportunities around the GBP/USD pair. In the absence of any relevant market-moving economic releases, it will be prudent to wait for a strong follow-through buying before positioning for any further gains.

Technical levels to watch

GBP/USD

Overview
Today last price 1.3254
Today Daily Change 0.0011
Today Daily Change % 0.08
Today daily open 1.3243
 
Trends
Daily SMA20 1.3357
Daily SMA50 1.3533
Daily SMA100 1.366
Daily SMA200 1.3795
 
Levels
Previous Daily High 1.3289
Previous Daily Low 1.3209
Previous Weekly High 1.3371
Previous Weekly Low 1.3194
Previous Monthly High 1.3698
Previous Monthly Low 1.3194
Daily Fibonacci 38.2% 1.324
Daily Fibonacci 61.8% 1.3259
Daily Pivot Point S1 1.3205
Daily Pivot Point S2 1.3167
Daily Pivot Point S3 1.3125
Daily Pivot Point R1 1.3285
Daily Pivot Point R2 1.3327
Daily Pivot Point R3 1.3365

 

 

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

AUD/USD bulls seek a break of 0.6925 for 0.6950 target area

AUD/USD bulls seek a break of 0.6925 for 0.6950 target area

AUD/USD is consolidated at the start of the Asian day following some back and forth at the start of the week. The Aussie is trading at 0.6922 and will be dependent on the trajectory of the greenback in the absence of domestic data this week other than Retail Sales tomorrow. 

AUD/USD News

EUR/USD retreats from fortnight high near 1.0600 on recession/inflation fears

EUR/USD retreats from fortnight high near 1.0600 on recession/inflation fears

EUR/USD holds onto the pullback from a two-week high as bulls get rejections from short-term key resistances, as well as risk-off mood, during Tuesday’s Asian session. The major currency pair remains pressured around 1.0585.

EUR/USD News

Gold sees downside below $1,820, focus shifts to Fed Powell

Gold sees downside below $1,820, focus shifts to Fed Powell

Gold price displayed a failed attempt to sustain above the critical resistance of $1,840.00 on Monday. The precious metal has turned sideways after a sheer downside move and is expected to extend its losses after violating the crucial support of $1,820.85.

Gold News

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price finally shows the buy signal you’ve been waiting for

Terra’s LUNA price shows optimism to start the final week of June. The potential for a new bull run is beginning to materialize. LUNA price sees an uptick in social media commentary.
 

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