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GBP/USD extends its decline and tries to find a bottom near 1.21

  • The GBP/USD pair continues to retreat as the British Pound weakens further against the Dollar.
  • US data supports the dollar, while the UK data calendar is sparse and leaves sterling in the wind.
  • US and UK GDP will be released in the second half of the week, with US PCE on Friday.

The GBP/USD pair continues to slide below the 1.2160 area during the session on Wednesday, falling to session lows at 1.2110, as selling pressure looks to break the 1.2100 area heading into the second half of the week.

The rebound in the British Pound (GBP) late in the day is causing the pair to pull back slightly to 1.2140, but the strength of the Dollar remains a key factor in the broader markets.

The GDP and the PCE will focus the day from Thursday to Friday

US Durable Goods Orders came in well above expectations on Wednesday, coming in at 0.2% and beating the forecast of -0.5%. US Gross Domestic Product (GDP) figures will be released on Thursday, which markets expect to remain at 2.1%.

GBP/USD will be one of the indicators of most interest among investors during the week, as the UK GDP for the second quarter is expected to remain in line with the previous reading of 0.2%, but the action of the Friday will likely be overshadowed by the US personal consumption expenditure (PCE) price index.

US PCE inflation is expected to remain at 0.2% for the month of August, and the annualized figure is expected to rise from 4.2% to 3.9% for the same period.

GBP/USD Technical Outlook

The GBP/USD pair is firmly anchored in bearish territory, and has lost more than 4% in September alone.

The British Pound is trading at six-month lows against the Dollar, with the next major technical support area being the March low near 1.1800.

Technical indicators are in oversold territory, with the Relative Strength Index (RSI) at 14-day lows since the September 2022 drop to 1.0840.

The 200-day SMA is currently north of 1.2400, and the 34-day EMA has turned sharply lower, and is poised for a bearish crossover of the longer MA .

GBP/USD daily chart

GBP/USD technical levels


Latest price today 1.2141
Daily change today -0.0018
Today’s daily variation -0.15
Today’s daily opening 1.2159
daily SMA20 1.2447
daily SMA50 1.2631
SMA100 daily 1.2634
SMA200 daily 1.2434
Previous daily high 1.2216
Previous daily low 1.2153
Previous weekly high 1.2425
Previous weekly low 1.2231
Previous Monthly High 1.2841
Previous monthly low 1.2548
Daily Fibonacci 38.2 1.2177
Fibonacci 61.8% daily 1.2192
Daily Pivot Point S1 1.2136
Daily Pivot Point S2 1.2113
Daily Pivot Point S3 1.2073
Daily Pivot Point R1 1.2199
Daily Pivot Point R2 1.2238
Daily Pivot Point R3 1.2261

Source: Fx Street

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