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


Today last price 1.3677
Today Daily Change -0.0016
Today Daily Change % -0.12
Today daily open 1.3693
Daily SMA20 1.3563
Daily SMA50 1.3417
Daily SMA100 1.3202
Daily SMA200 1.2908
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



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.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

AUD/USD trades sub-0.7800 amid yields' return

US Treasury yields came back under the spotlight, resuming their advances after the ECB said it sees no need to intervene in bonds’ markets. AUD/USD trades around 0.7790 as yields support to the greenback.


EUR/USD retreats to stabilize around 1.2060

The EUR/USD pair advanced to 1.2112 but retreated amid the renewed dollar’s demand on resurgent government bond yields. Attention now shifts to US employment-related data.


Gold bears eye sub-$1,700 area amid strong yields, US dollar

Gold remains pressured near nine-month low, fades bounce off $1,702. Bond bears return amid optimism concerning US stimulus and vaccine power, comments from ECB add to the Treasury yield rally. American covid aid package, Fed’s Powell eyed amid a light calendar in Asia.

Gold News

Dogecoin price on the brink of a 40% explosion towards $0.07

Dogecoin price has been trading sideways for the past two days and inside a downtrend since its new all-time high of $0.087 on February 7. Now, the favorite canine-cryptocurrency is ready for a new leg up.

Read more

DXY continues to gain on Wednesday, eyes 91.60

US dollar firm and approaching Feb 4th highs from a significant technical support structure. US economy moderately gathering pace according to the Fed's Beige Book.

US Dollar Index News