- The dollar loses strength and yields gains, mainly against European rivals.
- GBP / USD returns above the 20-day average and points to highs for the day.
- Ahead: US Consumer Confidence and Durable Goods Order Data
The GBP / USD bounced in the last few hours and erased much of the daily losses. The price had fallen to 1.3766 hours ago, and is trading at 1.3810, trying to return above the 20 hour moving average, which if it happens could complete the downward correction.
The pair is moving mainly guided by the dollar. The greenback weakened in the last hours throughout the market and especially against the main European currencies. The DXY erased gains and is approaching 92.50 as Treasury yields recede.
The economic calendar shows many economic reports ahead. The start will be given by durable goods orders, then home prices, consumer confidence and the Richmond Fed index. Also, the two-day meeting of the Federal Reserve begins today. The statement will be released on Wednesday.
On the technical side, GBP / USD maintains a short-term bullish tone. The bullish run came to a halt on Tuesday after failing to break 1.3830. Above the next barrier is 1.3860. In the opposite direction, now 1.3795 is again a support to consider followed by 1.3765 and 1.3735 (low of July 26).
Technical levels
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