- The US dollar lost momentum during the American session, retracing the DXY to 92.00.
- GBP / USD bearish for the day, far from lows.
The pair GBP/USD it bottomed out at 1.3813 and then rallied, cutting losses. It trades near the 1.3850 zone, still in negative territory during the day, but far from the lows. The recovery of the pound was helped by a general decline in the dollar.
Despite the better than expected US economic data, the dollar lost steam. The shaky upward movement in US yields contributed to the rally in GBP / USD. The 10-year US yield spiked to 1.51% and then quickly fell back to 1.48%. The DXY hit weekly highs at 92.20 and is now struggling to stay above 92.00.
Perspectiva GBP/USD
GBP / USD managed to hold above 1.3800, however it is still under pressure. The area around 1.3800 is very strong support that if broken firmly could lead to an acceleration of the decline. The next zone is at 1.3660 / 65 (March and April lows).
A rally above 1.4020 is needed to turn the short-term bias to the upside. Before that level, strong resistance emerges at 1.3890 and 1.3950.
Technical levels
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