- The DXY was unable to sustain gains, fueling the GBP / USD rally.
- The pound is trading flat for the day, above the 20-day SMA, which suggests there is no clear bias.
The GBP/USD erased losses on Tuesday and hovered around 1.3915 / 20 around the same closing level on Monday. The chart does not show a clear direction, as the strength of the US dollar lost momentum amid falling US yields and a rally on Wall Street.
The Dow Jones is falling 0.35% and the Nasdaq 0.95%, far from the low it reached in the futures market but above the highs. The US 10-year yield is moving sideways between 1.41% and 1.44%.
The pound bottomed at 1.3858, the lowest level since February 18. Later, when markets around the world broke out of lows, GBP / USD rose again above 1.3900. It recently hit 1.3934 and then fell back modestly.
A daily close around the current level would end in a doji candle that would suggest some consolidation in the future. If it ends below 1.3850, more losses are likely.
For the next few hours, immediate support is at 1.3900, followed by 1.3865. On the upside, resistance could be seen at 1.3935 and then 1.3975.
Technical levels
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