- 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.
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.
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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