GBP/USD sees aggressive selling below 1.2600 on notable USD demand
- Fresh USD buying, Brexit backstop uncertainty drags the Cable lower.
- A breach of hourly 100-SMA at 1.2602 opens the floor for further downside.
- USD bulls await US retail sales data for further trading momentum.
The GBP/USD pair came under heavy selling pressure on a breach of the hourly 100-SMA support placed at 1.2602 and now prints fresh two-day lows at 1.2570, as the bears regain poise amid resurgent US dollar demand across its main competitors.
The bid tone around the US dollar keeps growing bigger in the European session, largely on the back of a sharp fall in the EUR/USD pair to the 1.13 handle after weak French, Eurozone and German manufacturing PMI readings that confirm ECB”s concerns on the economic outlook.
Further, looming uncertainty over the Irish border backstop and the latest comments by the UK PM Theresa May’s Deputy David Lidington collaborates to the bearish tone around the Cable.
In the day ahead, the bulls could be rescued only by the disappointing US retail sales data due later in the NA session at 1330 GMT. Until then, the USD dynamics and broader market sentiment will continue to drive the GBP/USD price-action.
GBP/USD Technical Levels
Today Last Price: 1.2574
Today Daily change: -91 pips
Today Daily change %: -0.719%
Today Daily Open: 1.2665
Previous Daily SMA20: 1.2746
Previous Daily SMA50: 1.29
Previous Daily SMA100: 1.2937
Previous Daily SMA200: 1.3263
Previous Daily High: 1.2688
Previous Daily Low: 1.2593
Previous Weekly High: 1.284
Previous Weekly Low: 1.2659
Previous Monthly High: 1.3176
Previous Monthly Low: 1.2723
Previous Daily Fibonacci 38.2%: 1.2629
Previous Daily Fibonacci 61.8%: 1.2651
Previous Daily Pivot Point S1: 1.2609
Previous Daily Pivot Point S2: 1.2554
Previous Daily Pivot Point S3: 1.2515
Previous Daily Pivot Point R1: 1.2704
Previous Daily Pivot Point R2: 1.2743
Previous Daily Pivot Point R3: 1.2798