The GBPUSD currency pair, at a rate of 1.26259, is appealing to buyers for the second day in a row due to a weaker value of the US dollar, which is providing support.
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- GBP/USD attracts buyers for the second successive day and draws support from a softer USD.
The pair currently trades last at 1.26259.
The previous day high was 1.2611 while the previous day low was 1.2566. The daily 38.2% Fib levels comes at 1.2594, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2583, expected to provide support.
The GBP/USD pair gains some positive traction for the second successive day on Tuesday and recovers further from its lowest level since June 13, around the 1.2550-1.2545 area touched last week. Spot prices trade around the 1.2620-1.2625 zone during the Asian session, up over 0.15% for the day, though remain below the 100-day Simple Moving Average (SMA) support breakpoint.
Retreating US Treasury bond yields drags the US Dollar (USD) away from a nearly three-month top set last week, which, in turn, is seen as a key factor pushing the GBP/USD pair higher. Apart from this, a generally positive risk tone, bolstered by new measures rolled out by China over the weekend to draw investors back into its battered stock markets, further undermines the safe-haven Greenback. The British Pound (GBP), on the other hand, draws support from the Bank of England (BoE) Deputy Governor Ben Broadbent’s hawkish remarks on Saturday, saying that policy rates may well have to remain in restrictive territory for some time.
That said, the possibility of more interest rate hikes by the Federal Reserve (Fed) should act as a tailwind for the US bond yields and help limit any meaningful USD downfall, at least for now. In fact, Fed Chair Jerome Powell said on Friday that inflation remains too high and that the central bank is ready to continue hiking rates to tame persistently high prices. Furthermore, a surprisingly resilient US economy could force the Fed to keep interest rates higher for longer. The expectations had pushed the yield on the benchmark 10-year US government bond to its highest level since November 2007 last week and favour the USD bulls.
Apart from this, growing acceptance that the Bank of England (BoE) will pause its rate-hiking cycle after the widely anticipated 25 bps lift-off at the September meeting might further contribute to capping the GBP/USD pair. Hence, it will be prudent to wait for strong follow-through buying before confirming that the recent downward trajectory witnessed over the past six weeks or so has run its course and positioning for any meaningful appreciating move. Traders now look to the US economic docket, featuring the Conference Board’s Consumer Confidence Index and JOLTS Job Openings data, for some impetus later this Tuesday.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2618 at the time of writing. Pair opened at 1.2602 and is trading with a change of 0.13 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2618 |
| 1 | Today Daily Change | 0.0016 |
| 2 | Today Daily Change % | 0.1300 |
| 3 | Today daily open | 1.2602 |
The pair is trading below its 20 Daily moving average @ 1.2708, below its 50 Daily moving average @ 1.2784 , below its 100 Daily moving average @ 1.2642 and above its 200 Daily moving average @ 1.2403
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2708 |
| 1 | Daily SMA50 | 1.2784 |
| 2 | Daily SMA100 | 1.2642 |
| 3 | Daily SMA200 | 1.2403 |
The previous day high was 1.2611 while the previous day low was 1.2566. The daily 38.2% Fib levels comes at 1.2594, expected to provide support. Similarly, the daily 61.8% fib level is at 1.2583, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.2575, 1.2547, 1.2529
- Pivot resistance is noted at 1.262, 1.2638, 1.2665
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2611 |
| Previous Daily Low | 1.2566 |
| Previous Weekly High | 1.2800 |
| Previous Weekly Low | 1.2548 |
| Previous Monthly High | 1.3142 |
| Previous Monthly Low | 1.2659 |
| Daily Fibonacci 38.2% | 1.2594 |
| Daily Fibonacci 61.8% | 1.2583 |
| Daily Pivot Point S1 | 1.2575 |
| Daily Pivot Point S2 | 1.2547 |
| Daily Pivot Point S3 | 1.2529 |
| Daily Pivot Point R1 | 1.2620 |
| Daily Pivot Point R2 | 1.2638 |
| Daily Pivot Point R3 | 1.2665 |
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