GBP/USD falls under 1.3800 to one-week lows

Pound weakens near the top of the week amid risk aversion.
GBP/USD could post rock bottom weekly close since April.
The recovery of GBP/USD was short-lived and after reaching 1.3865, it turned to the downside. Recently broke under European session lows and fell to 1.3771, hitting rock bottom level since July 9. It remains under 1.3800, on its way toward rock bottom weekly close since April.

Dollar mixed, pound down
Over the last hour the pound weakened across the board. EUR/USD broke above 0.8555 while GPB/USD under 1.3800. At an equivalent time, equity indices turned negative in Wall Street. The Dow Jones is down by 0.25% and therefore the Nasdaq 0.07% after a positive opening.

Economic data from the US came in mixed. Retail sales surpass expectations with an unexpected increase of 0.6% in June. The preliminary reading of consumer sentiment from the University of Michigan showed a decline within the main index to 80.8, below the 86.5 expected. Next week, no major economic reports are due within the US and Fed’s officials will remain in silence before subsequent FOMC meeting (July 27/28).

Comments from Bank of England officials during the week, pointing to the necessity to scale back asset purchases before expected, did not lift the pound significantly. “The impact on GBP was limited, partly because subsequent step within the eventual policy normalisation process (rate hikes) remains still how off. Despite the increasing Covid-19 cases, the united kingdom government will deliver the ultimate a part of the reopening/end of restrictions on 19 July”, explain ING analysts. Next week UK data includes June retails sales and July PMI, both reports due on Friday.

Technical levels
Today last price 1.3782
Today Daily Change -0.0046
Today Daily Change % -0.33
Today daily open 1.3828

Daily SMA20 1.3856
Daily SMA50 1.4016
Daily SMA100 1.3937
Daily SMA200 1.3692

Previous Daily High 1.3899
Previous Daily Low 1.3805
Previous Weekly High 1.3908
Previous Weekly Low 1.3742
Previous Monthly High 1.4249
Previous Monthly Low 1.3787
Daily Fibonacci 38.2% 1.3841
Daily Fibonacci 61.8% 1.3863
Daily Pivot Point S1 1.3789
Daily Pivot Point S2 1.375
Daily Pivot Point S3 1.3695
Daily Pivot Point R1 1.3883
Daily Pivot Point R2 1.3938
Daily Pivot Point R3 1.3977


Read Previous

USD/INR Price Analysis: Indian rupee vulnerable while above 74.40

Read Next

Silver Price Analysis: XAG/USD bears look to seize control near $26.00 mark

Leave a Reply

Your email address will not be published. Required fields are marked *