GBP/USD trims losses as the US dollar pulls back, remains in the range
|- Cable fails again to hold above 1.4200 and corrects lower.
- GBP/USD keeps moving in a consolidation range between 1.4100 and 1.4200.
The GBP/USD bottomed before the release of US data at 1.4135 amid a rally of the US dollar across the board. Afterward, the greenback lost strength favoring a rebound in cable back above 1.4150.
The intraday bias still points to the downside in GBP/USD but the bearish pressure eased significantly. The economic data from the US came in mostly above expectations. The US dollar at first extended gains and later pulled back, amid a decline in US yields.
The rebound of the pound has been more limited than other currencies. Despite GBP/USD moving off lows, EUR/GBP rose back above 0.8600, reflecting some weakness in the British currency.
The DXY is sharply off highs. Earlier on Friday, it peaked at 90.45, the highest since May 17 and it is moving back toward 90.10. At the same time, the 10-year yield fell to 1.58% after testing the 1.62% area for hours.
From a technical perspective, GBP/USD continues to move sideways, in a consolidation range. Despite the first close above 1.4200 in years on Thursday, the pair failed to hold and pulled back. It needs a clear break above 1.4250 to open the doors to more gains. On the flip side, the key support is the 1.4100 zone. A close below would suggest a stepper correction ahead.
Technical levels
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.