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GBP / USD falls to week-long lows below 1.3800 as the US dollar strengthens

  • The US dollar soars supported by US economic data.
  • Momentum from pound losses amid risk aversion turns negative even against the euro.
  • GBP / USD is heading towards the lowest daily close since late August.

The GBP/USD It broke below 1.3800 and fell to 1.3763, reaching the lowest level since September 9. It remains near lows, under pressure, amid a dollar rally across the board.

Data Boosts US Dollar Ahead of FOMC Meeting

US economic data released Thursday beat expectations, particularly the Philadelphia Fed and retail sales. Those figures prompted a rally in the dollar and a sell-off in Treasuries. The 10-year yield jumped to 1.35% before dropping to 1.32%.

Before the FOMC meeting next week, the dollar was up against all of its rivals. Before the economic reports, the pound was among the best performers. However, the fall in share prices after the start of the US session weighed down on the British pound. EUR / GBP rallied from the key 0.8500 area, back towards 0.8550, further weakening the pound.

GBP / USD could post the lowest daily close since late August, below the 20-day simple moving average. The pair is breaking out of a consolidation range. The next support below 1.3760 could be seen around the September lows of 1.3720 / 25.

Technical levels

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