GBP/USD trims gains and retreats to 1.3850


  • Cable trims gains versus dollar, turns negative against euro.
  • Dollar holds onto losses, affected by Powell’s remarks.

The GBP/USD peaked hours ago at 1.3891 and then pulled back, finding support around the 1.3850 area. It remains far from the daily top, still moving sideways between 1.3900 and 1.3800, as it has been the case during the current week.

Earlier, the pound rose across the board, supported by inflation data from the United Kingdom. In June, the CPI rose to 2.5%, above the2.2% expected. On American hours, the sterling lost strength and turned negative versus the euro.

At the moment of writing, while GBP/USD trades near the middle of the daily range around 1.3860, EUR/USD is at fresh highs above 1.1830.

Powell talks, dollar drops

Chair Powell, who is speaking with lawmakers, mentioned inflation will likely remain elevated over the coming months before moderating. He said the labor market still has a long way to go suggesting no QE tapering in the short term. His comments weakened the US dollar that trimmed the gains that followed recent higher-than-expected US inflation data.

Later on Wednesday, the Fed will release the Beige Book about the state of the economy. Employment data is due on Thursday in the UK. In the US, jobless claims, the Philly Fed, and industrial production data are due. Also Fed Chair Powell will again testify on monetary policy.

Technical levels

GBP/USD

Overview
Today last price 1.3851
Today Daily Change 0.0039
Today Daily Change % 0.28
Today daily open 1.3812
 
Trends
Daily SMA20 1.3867
Daily SMA50 1.4018
Daily SMA100 1.3941
Daily SMA200 1.3683
 
Levels
Previous Daily High 1.3905
Previous Daily Low 1.38
Previous Weekly High 1.3908
Previous Weekly Low 1.3742
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.384
Daily Fibonacci 61.8% 1.3865
Daily Pivot Point S1 1.3773
Daily Pivot Point S2 1.3734
Daily Pivot Point S3 1.3668
Daily Pivot Point R1 1.3878
Daily Pivot Point R2 1.3944
Daily Pivot Point R3 1.3983

 

 

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