GBP/USD hits fresh daily lows near 1.2700

US dollar recovers momentums as US yields rise and equity prices retreat.
Pound’s negative tone is incrementing ahead of Brexit deal debate at Parliament.

Matías Salord FXStreet

Cable weakened during the American session and fell to 1.2709, hitting a fresh daily low. Then bounced modestly to the upside to 1.2730. The move to the downside took place on the back of a recovery of the US dollar across the board.

The DXY rose from 2-month lows and now is attempting to rise back above 96.00. The improvement in risk appetite weakened the US dollar early on Tuesday. Optimism about the China-US trade talks supported the positive sentiment. US president Trump tweeted today that “talks are going very well.” Today at 9 PM ET he will deliver a speech from the White House on the Southern border.

The pound also hit a fresh low versus the euro at the time GBP/USD bottomed. Uncertainties about the Brexit deal vote at the Parliament next week and its potential consequences are a negative influence for the pound at the moment.

Technical levels to watch

Earlier today, GBP/USD approached 1.2800, but it was rejected like a week ago. Now cable is in negative territory for the day, trading at 1.2720, about to post the first slide after rising during three days in-a-row.

To the downside, support levels might be seen at 1.2700/10, 1.2675 and 1.2650. On the upside, 1.2750 is the immediate resistance followed by 1.2785 and then comes the 1.2800 zone. A consolidation on top of the 1.2800 area would clear the way to more gains.

GBP/USD

Overview:
    Today Last Price: 1.2731
    Today Daily change: -39 pips
    Today Daily change %: -0.305%
    Today Daily Open: 1.277
Trends:
    Previous Daily SMA20: 1.2661
    Previous Daily SMA50: 1.2773
    Previous Daily SMA100: 1.2897
    Previous Daily SMA200: 1.3149
Levels:
    Previous Daily High: 1.2788
    Previous Daily Low: 1.2707
    Previous Weekly High: 1.2815
    Previous Weekly Low: 1.2438
    Previous Monthly High: 1.284
    Previous Monthly Low: 1.2477
    Previous Daily Fibonacci 38.2%: 1.2757
    Previous Daily Fibonacci 61.8%: 1.2738
    Previous Daily Pivot Point S1: 1.2722
    Previous Daily Pivot Point S2: 1.2674
    Previous Daily Pivot Point S3: 1.2642
    Previous Daily Pivot Point R1: 1.2803
    Previous Daily Pivot Point R2: 1.2835
    Previous Daily Pivot Point R3: 1.2883

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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