- The US dollar gains momentum as market sentiment deteriorates.
- DXY rises 0.40%, US 10-year yields return to 1.80%.
- GBP / USD is still bullish, but faces stiff resistance at 1.3600.
The GBP/USD it fell further from above 1.3600 and hit a fresh daily low of 1.3531. It remains under pressure amid a stronger US dollar across the board.
The dollar benefits from the deterioration in market sentiment and rising US yields. The Dow Jones falls 1.40% and the Nasdaq falls 2.23%. Treasuries are not benefiting from the risk-off tone. With US yields near recent highs, the DXY continued to climb. The index is up 0.40% and is trading at 96.10.
technical perspective
“GBP / USD is trading in an uptrend, benefiting from the bullish momentum on the daily chart and breaking above the 50 and 100 day SMAs on its way to the upside. For the scenario of a dip to materialize in the next month, it would need to break below this uptrend support line. Horizontally, 1.3480, 1.3430 and critically 1.3380 provide support. Lower, 1.3280 and 1.32 are seen, before the December low of 1.3175, ”said Yohay Elam, analyst at FXStreet.
On the upside, GBP / USD could face immediate resistance at 1.3565. Above the critical level is still the 1.3600 area. A prior consolidation is needed to open the doors to more profit.
Technical levels
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