GBP/USD consolidates at one-month lows under 1.3400 as hawkish Fed, strong GDP data keep dollar buoyant

GBP/USD fell to one-month lows on Thursday underneath the 1.3400 level after slumping below resistance in the 1.3450 area earlier in the session, weighed by a buoyant dollar in wake of Wednesday’s hawkish Fed meeting and strong US GDP data. The pair is now consolidating in the 1.3380 area, practically bang on a level of resistance turned support from back in mid-December, where it trades lower by about 0.6% on the day. Those losses, though extensive, are modest compared to many of sterling’s G10 peers; AUD is down 1.2%, SEK and NZD are down 1.1%, EUR and CHF are down around 0.9%. Sterling’s performance puts it roughly in line with that of the loonie and yen, both of which are also down about 0.6% on the day versus the buck. Read more...

GBP/USD

Overview
Today last price 1.3381
Today Daily Change -0.0081
Today Daily Change % -0.60
Today daily open 1.3462
 
Trends
Daily SMA20 1.3573
Daily SMA50 1.3422
Daily SMA100 1.3534
Daily SMA200 1.3726
 
Levels
Previous Daily High 1.3525
Previous Daily Low 1.3444
Previous Weekly High 1.369
Previous Weekly Low 1.3546
Previous Monthly High 1.355
Previous Monthly Low 1.3161
Daily Fibonacci 38.2% 1.3475
Daily Fibonacci 61.8% 1.3494
Daily Pivot Point S1 1.3429
Daily Pivot Point S2 1.3397
Daily Pivot Point S3 1.3349
Daily Pivot Point R1 1.3509
Daily Pivot Point R2 1.3557
Daily Pivot Point R3 1.3589

 

GBP/USD Forecast: Next bearish target aligns at 1.3350

GBP/USD has managed to recover modestly from the monthly low it set at 1.3405 earlier in the session but it's not out of the woods yet. In case buyers fail to defend 1.3400, the pair is likely to extend its slide toward 1.3350. The FOMC Chairman Powell's hawkish tone during the press conference on Wednesday, despite the Fed's decision to leave policy settings unchanged, allowed the dollar to gather strength against its major rivals. Read more...

Majors technical outlook

Since shaking hands with the lower side of the 200-day simple moving average (currently circling $1.3719), GBP/USD shed nearly 3.0 percent (or nearly 400 pips). Support is nearby at $1.3355, with a break triggering additional bearish flow, perhaps setting the stage for a test of Quasimodo support at $1.3119. Trend on this timeframe remains biased to the downside, with the relative strength index (RSI) also recently nudging beneath the 50.00 centreline, signalling negative momentum (average losses exceeding average gains). Read more...

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