GBP/USD drops sharply to low 1.4000s as US bond yields surge
GBP/USD sold off sharply over the past few hours, dropping from session highs in the 1.4180s set shortly after the start of US trade to hit session lows at bang on 1.4000 in recent trade. The pair is now consolidating just to the south of the 1.4050 mark and trades lower by about 0.75% or over 100 pips on the day. Thursday is shaping up to be cables worst day since 15 January, though on the month, the pair still trades over 2.5% higher.
|Today last price||1.4024|
|Today Daily Change||-0.0113|
|Today Daily Change %||-0.80|
|Today daily open||1.4137|
|Previous Daily High||1.4243|
|Previous Daily Low||1.4082|
|Previous Weekly High||1.4036|
|Previous Weekly Low||1.383|
|Previous Monthly High||1.3759|
|Previous Monthly Low||1.3451|
|Daily Fibonacci 38.2%||1.4182|
|Daily Fibonacci 61.8%||1.4144|
|Daily Pivot Point S1||1.4065|
|Daily Pivot Point S2||1.3994|
|Daily Pivot Point S3||1.3905|
|Daily Pivot Point R1||1.4226|
|Daily Pivot Point R2||1.4315|
|Daily Pivot Point R3||1.4387|
GBP/USD Forecast: Dollar’s demand finally taking its toll on the pair
The GBP/USD pair fell in the final hours of US trading, ending the day in the red around 1.4040. The pair bared quite well with the dollar’s demand, but the greenback found strength in soaring US Treasury yields after a 7-year bond auction resulted at 1.19% vs 1.14% ahead of the event. The UK macroeconomic calendar had nothing to offer, preventing the pound from advancing further despite the broad dollar weakens, as the UK currency is largely overbought. On a positive note, UK´s chief medical officials recommended downgrading the coronavirus alert level as pressure on the health system recedes. The UK will publish February Nationwide Housing Prices on Friday, hardly a market mover.
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.