GBP / USD falls below 1.3500 as the dollar rallies in the market

• The dollar gains momentum and rises throughout the market, erasing losses.
• The pound is under pressure, despite the Brexit deal.

He GBP / USD fell in the last hour as the dollar rallied across the market, and fell to 1.3476, reaching the lowest level since last Wednesday. The price remains in the minimum zone, pressured to the downside by the rise of the DXY and the persistent weakness of the pound.

The dollar picked up pace on all fronts and erased almost all the losses in the Asian session and the first half of the European. The DXY had fallen to 89.98, the lowest level since December 20, rebounded and is trading 0.10% higher on Monday, around 90.30.

The strength of the dollar occurs despite the fact that actions in the world remain in positive territory. Treasury yields are on the rise, with the 10-year rate at 0.9555%. The rebound in the dollar may also be driven by a technical correction, with most currency pairs such as EUR / USD and AUD / USD retreating after reaching highs in months.

Regarding the pound, although an agreement was reached by the Brexi In the run-up to Christmas, there are still issues to be resolved. Furthermore, in the price of the pound there was already a discounted part that an understanding was to be reached between the United Kingdom and the European Union.

On December 30, the agreement would be voted in the Parliament British. While the ambassadors of the European Union have unanimously approved the social security approval of the application of the cooperation agreement between both parties as of January 1.

From a technical point of view, GBP / USD was slowed again last week by the 1.3600 / 20 zone, and undertook a pullback. The short-term outlook now looks somewhat weak. To enable a strong advance, the pound needs to break down and assert itself above 1.3620. To the downside, the next supports can be located at 1.3445 / 50 and 1.3395.

Technical levels