- The British pound, rejected at 1.3645, finds support at 1.3540.
- The US dollar bounces higher on safe-haven flows.
The pound sterling it ended a four-day rally on Wednesday and fell back from a week-long high at 1.3645. The strength of the US dollar has weighed on the GBP which has dipped below 1.3600 to consolidate above the session lows at 1.3540.
The dollar rebounds on growing concern about inflation
The US dollar rallied against its main rivals on Wednesday, and the dollar index returned to near its year-to-date highs as bitter market sentiment weighed on risk assets. Crude oil prices have reached a new seven-year high, raising concerns about the impact of rising inflation on the post-pandemic recovery.
Beyond that, the US ADP report, seen as a leading indicator of nonfarm payrolls on Friday, saw a 568,000 rise in September, beating expectations for 428,000 new jobs. A confirmation of these figures later this week could clear the way for the Federal Reserve to begin reversing bond purchases in November, which has been another important source of support for the dollar.
Technical levels
GBP/USD
| Panorama | |
|---|---|
| Today’s Last Price | 1.3583 |
| Today’s Daily Change | -0.0046 |
| Today’s Daily Change% | -0.34 |
| Today’s Daily Opening | 1.3629 |
| Trends | |
|---|---|
| SMA of 20 Daily | 1.3687 |
| SMA of 50 Daily | 1.3762 |
| SMA of 100 Daily | 1.3862 |
| 200 SMA Daily | 1.3845 |
| Levels | |
|---|---|
| Daily Previous Maximum | 1.3648 |
| Daily Previous Minimum | 1.3584 |
| Weekly Preview Maximum | 1.3729 |
| Weekly Prior Minimum | 1.3412 |
| Monthly Previous Maximum | 1.3913 |
| Minimum Previous Monthly | 1.3412 |
| Daily Fibonacci 38.2% | 1.3624 |
| Daily Fibonacci 61.8% | 1.3609 |
| Daily Pivot Point S1 | 1.3593 |
| Daily Pivot Point S2 | 1.3557 |
| Daily Pivot Point S3 | 1.353 |
| Daily Pivot Point R1 | 1.3657 |
| Daily Pivot Point R2 | 1.3684 |
| Daily Pivot Point R3 | 1.372 |
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