#GBPUSD @ 1.17755 -imp levels: DXY up by 0.82%, near multi-year highs.

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• DXY up by 0.82%, near multi-year highs.
• US yields rise further, 10-year back above 3.0%-
• GBP/USD drops for the fourth consecutive day, below July lows.

The pair currently trades last at 1.17755.

The previous day high was 1.1937 while the previous day low was 1.1792. The daily 38.2% Fib levels comes at 1.1847, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1882, expected to provide resistance.

The GBP/USD dropped further and printed a fresh two-year low at 1.1736. It is undress pressure amid a stronger US dollar and risk aversion.

Equity prices in Wall Street are falling sharply. The Dow Jones is at 12 day lows, falling by 1.44% and the Nasdaq tumbles more than 2%. The FTSE 100 lost 0.22%.

Despite risk aversion, Treasury bonds are adding to last week’s losses. The US 10-year stands at 3.02%, the highest since July 21 and the 30-year is at 3.25%, the highest since July 8. The US Dollar Index is testing 109.00, up 0.82%, on its way to the highest daily close since September 2002.

Expectations about more aggressive tightening from the Federal Reserve keeps the dollar on demand ahead of the Jackson Hole symposium. On Friday, Jerome Powell will deliver a speech. A 50 basis point rate hike is fully priced, although a 75 bps hike is also likely according to money markets.

Below 1.1740, the next support could be seen around 1.1710 and then not much until 1.1630. The 2020 low waits near 1.1400 but before a strong area is located at 1.1450. On the upside, 1.1795 has become the immediate resistance, followed by 1.1835 (Aug 22 high).

Technical Levels: Supports and Resistances

GBPUSD currently trading at 1.1758 at the time of writing. Pair opened at 1.1828 and is trading with a change of -0.59 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2102, 50 SMA 1.2088, 100 SMA @ 1.2369 and 200 SMA @ 1.2876.

The previous day high was 1.1937 while the previous day low was 1.1792. The daily 38.2% Fib levels comes at 1.1847, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1882, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.1768, 1.1708, 1.1623
• Pivot resistance is noted at 1.1913, 1.1998, 1.2058

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