- The US dollar is higher during the US session across the board.
- GBP / USD is down for the third day in a row, heading towards the lowest close since August 26.
The GBP/USD it fell further and bottomed at 1.3725, reaching the lowest intraday level since August 27. It then trimmed losses and is trying to climb back above 1.3750, still well below the day, poised to post the lowest cirre in nearly two weeks.
A stronger US dollar across the board remains the key driver for GBP / USD. The dollar is up for the third day in a row. The DXY is up 0.25% and is trading at 92.75, the highest level in a week. US bond yields have fallen for the day, but are far from lows. The 10-year yield is approaching 1.36%, after rebounding from 1.34%.
Economic data released Wednesday showed that the Job Openings and Job Turnover Survey (JOLTS) reached a record 10.9 million jobs available in the US in July. Later, the Federal Reserve will release the Beige Book. The key report for the week will be the Producer Price Index on Friday. Additionally, UK industrial production and growth data will be released on Friday.
Returns below the 200 SMA
The three-day decline in GBP / USD pushed the price of the weekly highs above 1.3900, again below the 20-day simple moving average (1.3765). The area around 1.3730 is immediate support which, if broken, should lead to a test of 1.3700.
A recovery above the 20 SMA could ease the downward pressure. The next resistance could be seen at 1.3812 / 15 and then 1.3880.
Technical levels
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