The GBPUSD currency pair is currently at 1.24066, and it is being evaluated at its lowest level in three months. This comes after a period of seven out of the last eight weeks where the pair either ended the week with little change or in a bearish manner.
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- The GBP/USD is testing three-month lows after closing flat or bearish for seven of the last eight weeks.
The pair currently trades last at 1.24066.
The previous day high was 1.2512 while the previous day low was 1.2435. The daily 38.2% Fib levels comes at 1.2464, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2482, expected to provide resistance.
The Pound Sterling (GBP) is notably bearish for Thursday, briefly breaking beneath the 1.2400 major handle against the Greenback (USD) as bears keep the GBP pinned to the floor.
Risk appetite continues to waffle for the Pound Sterling after Wednesday’s disappointing showing on the United Kingdom’s (UK) economic calendar docket. Gross Domestic Product (GDP) figures for the UK slipped more than markets expected, with the July figure decreasing by 0.5%, worse than the expected 0.2% decline and wiping out the previous month’s 0.5% gain.
Industrial Production for the same month also missed forecasts, with July’s figure printing a worse-than-expected -0.7% (forecast -0.6%), taking a big chunk out of the previous month’s 1.8% increase.
US Consumer Price Index (CPI) figures on Wednesday provided plenty of support for the USD, with inflation figures for the month of August coming in as expected at 0.6%, an acceleration from the previous month’s 0.2%.
On Thursday, the US saw Initial Jobless Claims, Producer Price Index (PPI), and Retail Sales figures.
Initial Jobless Claims for the week into September 8th came in better than expected, printing at 220K new claimants versus the forecast 225K. The previous week came in at 217K.
The PPI for August came in above forecast, clocking in at 0.7% versus the expected 0.4%, which was in-line with the previous figure. Retail Sales also improved, ticking up to 0.6% against the previous month’s 0.5% showing, and reversing the market forecast slowdown to 0.2%.
Friday will see the economic calendar firmly in the hands of Greenback bulls, with the Michigan Consumer Sentiment Index slated to show a minor decline from 69.1 to 69.5. If the indicator prints at or above expectations, it could give the USD just the bump it needs to extend gains into the weekly close.
The Pound Sterling has chalked in a new daily low below the 1.2400 handle in Thursday trading. Recent declines have taken the pair well below the 100-day Simple Moving Average (SMA) currently sitting at 1.2650, and the 50-day SMA has turned bearish from 1.2750.
A continued slide in the GBP/USD pair will see late May’s swing lows near 1.2300 challenged, while a relief rally for bidders will see the last swing low near 1.2550 acting as near-term resistance.
Technical Levels: Supports and Resistances
GBPUSD currently trading at 1.2402 at the time of writing. Pair opened at 1.249 and is trading with a change of -0.7 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.2402 |
| 1 | Today Daily Change | -0.0088 |
| 2 | Today Daily Change % | -0.7000 |
| 3 | Today daily open | 1.2490 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1.2612, 50 SMA 1.2749, 100 SMA @ 1.2656 and 200 SMA @ 1.2431.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.2612 |
| 1 | Daily SMA50 | 1.2749 |
| 2 | Daily SMA100 | 1.2656 |
| 3 | Daily SMA200 | 1.2431 |
The previous day high was 1.2512 while the previous day low was 1.2435. The daily 38.2% Fib levels comes at 1.2464, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.2482, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1.2446, 1.2402, 1.2369
- Pivot resistance is noted at 1.2523, 1.2556, 1.26
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.2512 |
| Previous Daily Low | 1.2435 |
| Previous Weekly High | 1.2643 |
| Previous Weekly Low | 1.2446 |
| Previous Monthly High | 1.2841 |
| Previous Monthly Low | 1.2548 |
| Daily Fibonacci 38.2% | 1.2464 |
| Daily Fibonacci 61.8% | 1.2482 |
| Daily Pivot Point S1 | 1.2446 |
| Daily Pivot Point S2 | 1.2402 |
| Daily Pivot Point S3 | 1.2369 |
| Daily Pivot Point R1 | 1.2523 |
| Daily Pivot Point R2 | 1.2556 |
| Daily Pivot Point R3 | 1.2600 |
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