GBPUSD at 1.28337 is experiencing notable profits due to the UK’s economic information fortifying predictions regarding BoE’s additional tightening.
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- GBP/USD trades with significant gains as UK economic data supports expectations of further BoE tightening.
The pair currently trades last at 1.28337.
The previous day high was 1.2786 while the previous day low was 1.263. The daily 38.2% Fib levels comes at 1.2726, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2689, expected to provide support.
GBP/USD trades with solid gains on Friday, set to finish its weekly rise in six months after UK economic data supported additional Bank of England (BoE) tightening. The US Federal Reserve (Fed) keeping rates unchanged was a headwind for the US Dollar (USD). Hence, the GBP/USD is trading at 1.2833, up 0.40%, after hitting a low of 1.2768.
Several factors benefitted the Pound Sterling (GBP) during the. Firstly, market sentiment remains upbeat, with most global equities trading with gains. That, alongside robust employment data in the UK, spurred a reaction in the bond market, with most investors expecting at least 125 bps of additional tightening by the BoE, which current Bank Rate sits at 4.50%.
Additionally, data from the United States (US) warranting a moderation in the pace of tightening softened the US Dollar trading tone as CPI and PPI figures slowed. That, alongside Fed’s decision not to increase rates in June to further assess upcoming data so they do not overshoot in monetary policy, gave another leg-up to the GBP/USD pair.
In the meantime, after Wall Street opened, Consumer Sentiment for June in the US improved, as the University of Michigan (UoM) revealed. Figures came at 68.0 vs. May’s Final 64.9, while inflation expectations for one year were downward revised from May 4.2%, while June data came at 3.3%.
Consequently, the GBP/USD capped its uptrend as US Treasury bond yields resumed to the upside, underpinning the greenback. The US 10-year Treasury bond yield rises five basis points up to 3.773%, while the US Dollar Index (DXY) edges up 0.13%, at 102.277.
Recently, Federal Reserve policymakers crossed wires with a hawkish stance after the latest Fed decision. Richmond Fed President Thomas Barkin said that he’s “comfortable doing more” if inflation does note recedes. Later, Fed Governor Christopher Waller added that slow progress on inflation “will probably require some more tightening.”
The UK economic docket will feature May’s inflation data release ahead of the Bank of England decision on Thursday. On the US front, Fed speakers would be grabbing most headlines, alongside the release of housing data and S&P Global PMIs.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2833 at the time of writing. Pair opened at 1.2784 and is trading with a change of 0.38 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2833 |
| 1 | Today Daily Change | 0.0049 |
| 2 | Today Daily Change % | 0.3800 |
| 3 | Today daily open | 1.2784 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2476, 50 SMA 1.2484, 100 SMA @ 1.2319 and 200 SMA @ 1.2039.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2476 |
| 1 | Daily SMA50 | 1.2484 |
| 2 | Daily SMA100 | 1.2319 |
| 3 | Daily SMA200 | 1.2039 |
The previous day high was 1.2786 while the previous day low was 1.263. The daily 38.2% Fib levels comes at 1.2726, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2689, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.268, 1.2577, 1.2524
- Pivot resistance is noted at 1.2836, 1.2889, 1.2993
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2786 |
| Previous Daily Low | 1.2630 |
| Previous Weekly High | 1.2590 |
| Previous Weekly Low | 1.2369 |
| Previous Monthly High | 1.2680 |
| Previous Monthly Low | 1.2308 |
| Daily Fibonacci 38.2% | 1.2726 |
| Daily Fibonacci 61.8% | 1.2689 |
| Daily Pivot Point S1 | 1.2680 |
| Daily Pivot Point S2 | 1.2577 |
| Daily Pivot Point S3 | 1.2524 |
| Daily Pivot Point R1 | 1.2836 |
| Daily Pivot Point R2 | 1.2889 |
| Daily Pivot Point R3 | 1.2993 |
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