- GBP / USD reversed an intraday decline to weekly lows, around the 1.3730 region.
- The lack of strength of the dollar and the mainly lateral movements limited the decline.
GBP / USD bounced from the 1.3730 area and returned to the level around 1.3750, which is the point that acts like a magnet so far this week. Traders are waiting for key US data.
Rejected from the 200-day mean
The pair extended the decline after Tuesday’s rejection from the very important 200-day SMA (just above 1.3800), finding support above 1.3730, from where it bounced. The GBP / USD rally in the last hours was supported by a modest dollar weakness.
The The decline in the dollar is still limited in part by the rise in the yields of the United States Treasury bonds.. The market is forming expectations about the Fed’s next steps and is moving between the guidance provided by Jerome Powell on Friday and what the next data may show. Numbers showing a stronger economy that could lead to more inflation and quicker central bank action, which should favor the dollar.
Traders on Wednesday are looking forward to US data which on Wednesday includes ADP’s private sector employment report and ISM manufacturing. This data will be the preview of the non-farm payrolls on Friday.
Technical levels
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