GBP/USD falls to fresh two-year lows near 1.1740 as dollar strengthens

  • DXY is up 0.82%, near multi-year highs.
  • US yields rise further, 10-year returns above 3.0%-.
  • GBP/USD falls for fourth day in a row, below July lows.

The GBP/USD continued to fall and hit a new two-year low at 1.1736. She is losing pressure amid a stronger US dollar and risk aversion.

Yields up, stocks down sharply

Stock prices on Wall Street are falling sharply. The Dow Jones is at a 12-day low, down 1.44%, and the Nasdaq is down more than 2%. The FTSE 100 lost 0.22%.

Despite risk aversion, Treasuries add to last week’s losses. The US 10-year yield stands at 3.02%, the highest level since July 21, and the 30-year yield at 3.25%, the highest since July 8. The dollar index is testing 109.00, up 0.82%, on its way to the highest daily close since September 2002.

Expectations of more aggressive Fed tightening keep the dollar in demand ahead of the Jackson Hole symposium. On Friday, Jerome Powell will make a speech. A 50 basis point rate hike is fully anticipated, although a 75 basis point rate hike is also likely according to money markets.

Below 1.1740, the next support could be seen around 1.1710 and then not much until 1.1630. The 2020 low awaits near 1.1400, but before that a strong zone lies at 1.1450. To the upside, 1.1795 has become immediate resistance, followed by 1.1835 (22 Aug high).

Technical levels

GBP/USD

Panorama
Last Price Today 1.1755
Today’s Daily Change -0.0073
Today’s Daily Change % -0.62
Today’s Daily Opening 1.1828
Trends
20 Daily SMA 1.2102
50 Daily SMA 1.2088
100 Daily SMA 1.2369
200 Daily SMA 1.2876
levels
Previous Daily High 1.1937
Previous Daily Minimum 1.1792
Previous Maximum Weekly 1.2148
Previous Weekly Minimum 1.1792
Monthly Prior Maximum 1.2246
Previous Monthly Minimum 1,176
Daily Fibonacci 38.2% 1.1847
Daily Fibonacci 61.8% 1.1882
Daily Pivot Point S1 1.1768
Daily Pivot Point S2 1.1708
Daily Pivot Point S3 1.1623
Daily Pivot Point R1 1.1913
Daily Pivot Point R2 1.1998
Daily Pivot Point R3 1.2058

Source: Fx Street

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