GBP/USD tumbles to one-week lows under 1.3800 as the US dollar strengthens


  • US dollar soars supported by US economic data.
  • Pound losses momentum amid risk aversion, turns negative even against EUR.
  • GBP/USD heads for lowest daily close since late August.

The GBP/USD broke below 1.3800 and tumbled to 1.3763, reaching the lowest level since September 9. It remains near the lows, under pressure, amid a rally of the greenback across the board.

Data boosts US dollar ahead of FOMC meeting

Economic data from the US released on Thursday came in above expectations, particularly the Philly Fed and retail sales. Those numbers triggered a rally of the dollar and a sell-off in Treasuries. The 10-year yield jumped to 1.35% before easing to 1.32%.

Ahead of next week’s FOMC meeting, the greenback rose versus all its rivals. Prior to the economic reports, the pound was among the top performers. However, the decline in equity prices after the beginning of the American session weighed on sterling. The EUR/GBP rebounded from the key 0.8500 area, back toward 0.8550, weakening further the pound.

The GBP/USD could post the lowest daily close since late August, under the 20-day simple moving average. The pair is breaking a consolidation range. The next support below 1.3760 might be seen around September lows at 1.3720/25.

Technical levels

GBP/USD

Overview
Today last price 1.3769
Today Daily Change -0.0073
Today Daily Change % -0.53
Today daily open 1.3842
 
Trends
Daily SMA20 1.3774
Daily SMA50 1.3808
Daily SMA100 1.3915
Daily SMA200 1.3832
 
Levels
Previous Daily High 1.3854
Previous Daily Low 1.3792
Previous Weekly High 1.3889
Previous Weekly Low 1.3726
Previous Monthly High 1.3958
Previous Monthly Low 1.3602
Daily Fibonacci 38.2% 1.383
Daily Fibonacci 61.8% 1.3816
Daily Pivot Point S1 1.3805
Daily Pivot Point S2 1.3768
Daily Pivot Point S3 1.3744
Daily Pivot Point R1 1.3866
Daily Pivot Point R2 1.389
Daily Pivot Point R3 1.3927

 

 

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