GBP/USD tumbles toward 1.3800 lowest in two weeks, as US Dollar soars


  • DXY jumps above 91.00 to the highest level in a week.
  • GBP/USD heads for a weekly loss after being unable to break 1.4000.

The GBP/USD accelerated the decline during the American session and tumbled to 1.3806, reaching the lowest level since April 16. The pair remains under pressure near the lows as the US dollar holds onto important daily gains.

The slide in GBP/USD was triggered by a rally of the US dollar across the board and amid a decline in equity prices. The DXY soared to 91.25, reaching weekly highs. The index gains 0.70% on Friday. In Wall Street, the Dow Jones drops by 0.75% and the Nasdaq by 0.60%.

Technical outlook

Friday’s slide during the American session deteriorated the outlook for the pound. Yohay Elam, Analyst at FXStreet, points out that all in all, “bulls are in the lead but lack absolute control.” He notes the daily chart shows the GBP/USD “is confined to range – from the double-bottom of 1.3670 to the quadruple top of 1.4010. The currency pair's recent upside drift has pushed it above the 50-day Simple Moving Average (SMA) and continues trading above the 100-day and 200-day SMAs. On the other hand, it has been unable to capture the broken uptrend support line that accompanied since late last year and until mid-March.”

Next week is a busy week for cable that could boost volatility with the Bank of England meeting and important US economic data that includes the Non-farm payrolls report on Friday.

Technical levels

GBP/USD

Overview
Today last price 1.3829
Today Daily Change -0.0112
Today Daily Change % -0.80
Today daily open 1.3941
 
Trends
Daily SMA20 1.3844
Daily SMA50 1.3875
Daily SMA100 1.3755
Daily SMA200 1.3422
 
Levels
Previous Daily High 1.3976
Previous Daily Low 1.3932
Previous Weekly High 1.4009
Previous Weekly Low 1.381
Previous Monthly High 1.4017
Previous Monthly Low 1.3671
Daily Fibonacci 38.2% 1.396
Daily Fibonacci 61.8% 1.3949
Daily Pivot Point S1 1.3923
Daily Pivot Point S2 1.3905
Daily Pivot Point S3 1.3879
Daily Pivot Point R1 1.3967
Daily Pivot Point R2 1.3994
Daily Pivot Point R3 1.4012

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures