Pound Sterling Price News and Forecast: GBP/USD drops sharply to low 1.4000s as US bond yields surge


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.  

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GBP/USD

Overview
Today last price 1.4024
Today Daily Change -0.0113
Today Daily Change % -0.80
Today daily open 1.4137
 
Trends
Daily SMA20 1.3842
Daily SMA50 1.3692
Daily SMA100 1.3436
Daily SMA200 1.3112
 
Levels
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.

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