GBP/USD falls to new multi-decade lows below 1.1050

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  • GBP/USD loses over 300 pips on the day.
  • The risk aversion environment in the market gives a boost to the dollar.
  • Disappointing UK data weighs on GBP.

After a phase of consolidation during Asian time, the GBP/USD came under heavy bearish pressure and lost over 200 pips on the day. At the time of writing, the pair is trading at its lowest level since 1985 at 1.1045, down nearly 2% on a daily basis.

Earlier in the day, UK data revealed that business activity in the private sector continued to contract in early September, with the preliminary composite PMI falling to 48.4 from 49.6 in August. This reading came in below market expectations of 49.

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In addition, the latest survey by the Confederation of British Industry revealed that the retail sales balance fell to -20 in September from +37 in August and fueled sterling’s sell-off.

In addition to the dismal UK data, the intense flight to safety boosts the dollar and further weighs on the pair. US stock index futures last lost between 1.3% and 1.6% on the day, suggesting safe-haven flows are likely to continue to dominate financial markets.

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S&P Global manufacturing and services PMIs will be released on the US economic docket later in the day.

Technical levels

GBP/USD

Panorama
Last Price Today 1.1077
Today’s Daily Change -0.0182
Today’s Daily Change % -1.62
Today’s Daily Opening 1.1259
Trends
20 Daily SMA 1.1519
50 Daily SMA 1.1828
100 Daily SMA 1,206
200 Daily SMA 1.2666
levels
Previous Daily High 1.1364
Previous Daily Minimum 1.1212
Previous Maximum Weekly 1.1738
Previous Weekly Minimum 1.1351
Monthly Prior Maximum 1.2294
Previous Monthly Minimum 1.1599
Daily Fibonacci 38.2% 1,127
Daily Fibonacci 61.8% 1.1306
Daily Pivot Point S1 1.1193
Daily Pivot Point S2 1.1126
Daily Pivot Point S3 1,104
Daily Pivot Point R1 1.1345
Daily Pivot Point R2 1.1431
Daily Pivot Point R3 1.1497

Source: Fx Street

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