GBP/USD Price Analysis: Drops below 1.2100 as risk-off impulse spikes further


  • GBP/USD has slipped below the crucial support of 1.2100 amid the risk-aversion theme.
  • The Pound Sterling bulls will dance to the tunes of the UK’s preliminary GDP (Q4) data.
  • A downside move below the demand zone by the Cable indicates weakness ahead.

The GBP/USD pair has surrendered the round-level support of 1.2100 in the Asian session. The Cable has witnessed selling pressure and has lost half of the gains added on Thursday. The downside pressure in the Pound Sterling has been triggered as investors have underpinned the risk-aversion theme ahead of the release of the United States Consumer Price Index (CPI).

The US Dollar Index has climbed above 103.04 as the street believes that January’s upbeat labor market data could propel a surprise rise in the inflation data to be released on Tuesday. Meanwhile, the Pound Sterling bulls will dance to the tunes of the United Kingdom’s preliminary Gross Domestic Product (GDP) (Q4) data.

GBP/USD has corrected to near the demand zone placed in a narrow range of 1.2090-1.2108 on a two-hour chart. The Cable has dropped after facing barricades around the 100-period Exponential Moving Average (EMA) at 1.2158, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has failed to sustain into the bullish range of 60.00-80.00, which indicates an absence of strength in the Pound Sterling bulls.

A further decline in the Cable below February 9 low at 1.2057 will drag the asset toward January 3 low at 1.1900 followed by horizontal support placed from January 6 low around 1.1841.

On the contrary, a break above January 24 low at 1.2263 will support a bullish reversal and will drive the Cable towards February 2 high around 1.2400. A breach of the latter will send the major toward January 23 high at 1.2448.

GBP/USD two-hour chart

GBP/USD

Overview
Today last price 1.2094
Today Daily Change -0.0022
Today Daily Change % -0.18
Today daily open 1.2116
 
Trends
Daily SMA20 1.2266
Daily SMA50 1.2191
Daily SMA100 1.1833
Daily SMA200 1.1947
 
Levels
Previous Daily High 1.2194
Previous Daily Low 1.2057
Previous Weekly High 1.2418
Previous Weekly Low 1.205
Previous Monthly High 1.2448
Previous Monthly Low 1.1841
Daily Fibonacci 38.2% 1.2142
Daily Fibonacci 61.8% 1.2109
Daily Pivot Point S1 1.2051
Daily Pivot Point S2 1.1986
Daily Pivot Point S3 1.1914
Daily Pivot Point R1 1.2188
Daily Pivot Point R2 1.2259
Daily Pivot Point R3 1.2325

 

 

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

EUR/USD stays below 1.1100, looks to post weekly losses

EUR/USD stays below 1.1100, looks to post weekly losses

EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.

EUR/USD News
GBP/USD struggles to find a foothold, trades near 1.3150

GBP/USD struggles to find a foothold, trades near 1.3150

GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.

GBP/USD News
Gold retreats toward $2,500 ahead of the weekend

Gold retreats toward $2,500 ahead of the weekend

Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.

Gold News
Week ahead – Investors brace for NFP amid Fed rate cut speculation

Week ahead – Investors brace for NFP amid Fed rate cut speculation

Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.

Read more
Easing Eurozone inflation to back an ECB rate cut in September

Easing Eurozone inflation to back an ECB rate cut in September Premium

Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures