GBP/USD under pressure below 1.3700 ahead of key UK data


  • GBP/USD in upside consolidation amid subdued DXY.
  • Fed’s Powell downed the US dollar, Biden failed to impress.
  • Focus shifts to the UK data dump and US Retail Sales.

Having faced rejection at 1.3700 on several occasions in Friday’s Asian trading so far, GBP/USD is consolidating the overnight gains led by broad-based US dollar sell-off.

The greenback got sold-off into the Fed Chairman Jerome Powell’s comments on the interest rates after he said that the time to raise the interest rates is no time soon.

Meanwhile, President-elect Joe Biden’s COVID-19 rescue plan also failed to impress the dollar bulls, as they struggled amid weaker Treasury yields. The US dollar index trades modestly flat around 97.25, having hit session lows at 97.18.

Further, the cable also draws support from some optimism around the coronavirus situation in the UK after said Wednesday that tougher restrictions brought in last week were starting to have an effect on the spread of COVID in some parts of the country.

On Thursday, Johnson’s spokesperson said that they are considering measures to prevent the introduction of the Brazilian COVID variant.

Also, favoring the GBP bulls are the market expectations that the Bank of England (BOE) will likely keep the interest rates unchanged at least until 2024 to avoid negative rates, according to the latest Reuters poll.

This coincides with the BOE Governor Andrew Bailey’s recent speech, in which he dismissed negative rates, calling it a controversial issue.

Markets are now looking forward to a bunch of critical UK economic releases, including the monthly GDP figures and industrial output data. Also, of note remains the US Retail Sales and Michigan Consumer Sentiment data, as the second week of 2021 draws to an end.

At the time of writing, GBP/USD drops 0.07% on a daily basis to 1.3676, having hit the highest levels since May 2018 at 1.3710 on Thursday. The spot appears to revisit the session lows reached at 1.3671.

GBP/USD technical levels

GBP/USD

Overview
Today last price 1.3677
Today Daily Change -0.0016
Today Daily Change % -0.12
Today daily open 1.3693
 
Trends
Daily SMA20 1.3563
Daily SMA50 1.3417
Daily SMA100 1.3202
Daily SMA200 1.2908
 
Levels
Previous Daily High 1.371
Previous Daily Low 1.3617
Previous Weekly High 1.3704
Previous Weekly Low 1.3532
Previous Monthly High 1.3686
Previous Monthly Low 1.3134
Daily Fibonacci 38.2% 1.3675
Daily Fibonacci 61.8% 1.3652
Daily Pivot Point S1 1.3636
Daily Pivot Point S2 1.358
Daily Pivot Point S3 1.3543
Daily Pivot Point R1 1.373
Daily Pivot Point R2 1.3767
Daily Pivot Point R3 1.3824

 

 

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