• Cable rises further from monthly lows amid a weaker dollar.
  • DXY retreats from monthly highs toward 94.00.
  • US inflation data due on Tuesday and Wednesday, to be watched closely.

The GBP/USD pair is recovering on Monday after falling last week to 1.3423, the lowest level in a month and slightly above the YTD low. During the American session, cable rose to 1.3578, reaching a fresh intraday high. It is hovering around 1.3550, up more than 70 pips for the day.

The recovery in GBP/USD is being driven by a weaker US dollar across the board. The greenback is retreating after last week rally, continuing the move that started on Friday after the NFP.

Higher US yields are not helping the greenback. The 10-year stands t 1.48%, (up more than 2%). The DXY is falling for the second day in a row, testing 94.00. US inflation data on Tuesday and Wednesday will be watched closely.

Market participants continue to digits the last week’s Bank of England meeting. The dovish tone from the central bank weighed on the pound. During Monday’s European session, the pound strengthened for the first time since the meeting and rose across the board.

Still, what the BoE did and the Brexit concerns could still impact on GBP. “The outlook for GBP will be guided by expectations regarding the pace of BoE policy tightening relative to the policy decisions taken by other major central banks such as the Fed and the ECB.  On the margin, UK politics concerning the issues of Brexit and sleaze may also impact the performance of GBP”, explained analysts at Rabobank.

Supported again above 1.3400

The decline of GBP/US found support above 1.3400, like what happened back in September. If it breaks below, the pound would likely accelerate to the downside. On the upside, a firm recovery above 1.3600 should strengthen the bullish outlook.

Technical levels

GBP/USD

Overview
Today last price 1.3553
Today Daily Change 0.0054
Today Daily Change % 0.40
Today daily open 1.3499
 
Trends
Daily SMA20 1.3693
Daily SMA50 1.3701
Daily SMA100 1.3761
Daily SMA200 1.3849
 
Levels
Previous Daily High 1.3509
Previous Daily Low 1.3424
Previous Weekly High 1.3698
Previous Weekly Low 1.3424
Previous Monthly High 1.3834
Previous Monthly Low 1.3434
Daily Fibonacci 38.2% 1.3477
Daily Fibonacci 61.8% 1.3457
Daily Pivot Point S1 1.3446
Daily Pivot Point S2 1.3393
Daily Pivot Point S3 1.3361
Daily Pivot Point R1 1.353
Daily Pivot Point R2 1.3562
Daily Pivot Point R3 1.3615

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD regained the smile…and the 200-day SMA

AUD/USD regained the smile…and the 200-day SMA

AUD/USD added to the positive start to the week and extended its bullish performance, surpassing the 0.6600 barrier and putting the critical 200-day SMA to the test.

AUD/USD News
EUR/USD rallies on Greenback weakness heading into US presidential election

EUR/USD rallies on Greenback weakness heading into US presidential election

EUR/USD benefited from a broad-market decline in the US Dollar as global markets brace for early polling outcomes from the US presidential election that kicked off on Tuesday. Fiber jumped two-thirds of one percent to claw back above the 1.0900 handle as investors hope for a market-positive outcome.

EUR/USD News
Gold gleams US election fears and soft US Dollar boosts prices

Gold gleams US election fears and soft US Dollar boosts prices

Gold prices increased during the New York session as Americans kept going to the polls amidst one of the closest of the US presidential elections this century. Risk appetite has improved, yet the golden metal post gains of over 0.22% due to uncertainty linked to election jitters and the Middle East.

Gold News
XRP could rise to $0.5608 despite weak on-chain data

XRP could rise to $0.5608 despite weak on-chain data

Ripple's XRP is trading near $0.5140 on Tuesday following declines in several of its on-chain data, which indicates declining investor interest. The remittance-based token could rally toward $0.5608 after crossing above the upper trendline resistance of a symmetry triangle.

Read more
US election day – A traders’ guide

US election day – A traders’ guide

Election day volatility: Brace for potential wild market swings. Election days bring opportunities, but also risks. Unclear results can increase volatility further.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures