- The US dollar falls after Fed Chairman Powell’s speech at the Jackson Hole symposium.
- The pound soars on Friday, cutting half of last week’s losses.
The pair GBP/USD it rose sharply on Friday and extended weekly gains. It is about to end the week hovering around 1.3765, up almost 150 pips more than a week ago.
A sharp drop in the US dollar across the board propelled GBP / USD on Friday which reversed sharply from a multi-day low at 1.3679 to the highest level since August 18 at 1.3780.
Fed Chairman Jerome Powell’s speech at the Jackson Hole symposium left the USD vulnerable. He noted a gradual decline before the end of the year, showing that there is no specific timeline. “There has been clear progress toward maximum employment,” Powell said.
Powell’s comments boosted stock prices and US bond yields fell. The aforementioned combination weighed on the USD.
technical perspective
According to Yohay Elam, Senior Analyst at FXStreet, to the upside, some resistance is at 1.3770, a late August high. “It is followed by 1.3810, which is where the 50 and 200 day SMAs will be. More importantly, the cable capped at 1.3895 in mid-August and defends the psychologically important level of 1.40 “.
Elam warns that if GBP / USD falls back further, “the 50-day SMA is about to break below the 200-day SMA, which would be a deadly crossover pattern. That would be a bearish sign. “
Technical levels
GBP/USD
| Panorama | |
|---|---|
| Today’s Last Price | 1.3778 |
| Today’s Daily Change | 0.0078 |
| Today’s Daily Change% | 0.57 |
| Today’s Daily Opening | 1.37 |
| Trends | |
|---|---|
| SMA of 20 Daily | 1.3807 |
| SMA of 50 Daily | 1.3822 |
| SMA of 100 Daily | 1.3921 |
| 200 SMA Daily | 1.3801 |
| Levels | |
|---|---|
| Daily Previous Maximum | 1.3768 |
| Daily Previous Minimum | 1.3689 |
| Weekly Preview Maximum | 1.3879 |
| Weekly Prior Minimum | 1.3602 |
| Monthly Previous Maximum | 1.3984 |
| Minimum Previous Monthly | 1.3572 |
| Daily Fibonacci 38.2% | 1.3719 |
| Daily Fibonacci 61.8% | 1.3738 |
| Daily Pivot Point S1 | 1.367 |
| Daily Pivot Point S2 | 1.364 |
| Daily Pivot Point S3 | 1.3591 |
| Daily Pivot Point R1 | 1.3749 |
| Daily Pivot Point R2 | 1.3798 |
| Daily Pivot Point R3 | 1.3828 |
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