- Cable accelerates slide after losing key technical levels.
- US Dollar rebounds and hits highest since Monday.
GBP/USD broke below 1.3850 and dropped quickly to 1.3812, reaching the lowest since Monday. The pair was already lower and extended the decline during the American session. The greenback rose further across the board following Draghi’s press conference.
The US dollar gained momentum on the back of easing fears of a global trade war. Some kind of announcement is expected today from the White House regarding tariffs.
Despite falling against the US dollar, the pound was rising versus the euro. The common currency peaked at the beginning of Draghi’s press conference but then reversed sharply. The slide of EUR/USD added more strength to the rally of the US dollar. The Dollar Index rose from 89.45 to levels on top of 90.00.
Key economic data will be released on Friday. In the UK, trade balance and industrial production and in the US, the official jobs report.
Technical outlook
The short-term tone turned bearish after GBP/USD broke an uptrend line from March lows and also the 1.3850 zone. Momentum continues to favor the downside a test of 1.3800 before the end of the day seems likely. Below support levels are seen at 1.3770 and 1.3755.
To the upside, now 1.3850 is the immediate resistance followed by 1.3880. If the pound rises above the last one, it would remove the short-term bearish pressure and could rise further to test 1.3910 (Mar 7 & 8 highs).
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
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.