GBP / USD falls to week-long lows near 1.3700, remains weak

• GBP / USD extended the sharp pullback from levels above 1.3800 and fell again on Wednesday.
• Tone of greater caution in the markets favors the dollar, the DXY at 94.00.
• The pound is also losing ground against the euro and the Swiss franc.

GBP / USD witnessed strong selling during the European session and fell to a week and a half lows, around the 1.3720-15 region in the last hour. After a small rebound, it returned to the area of ​​daily lows, where it is trading.

The pound remains under pressure, following the sharp reversal that started Tuesday from the 1.3825-30 resistance zone. A shift in market sentiment, as evidenced by a drop in equity markets and commodity prices, supported the dollar.

On the other hand, tensions between the UK and France over fishing rights and a new controversy over the Northern Ireland protocol acted as a headwind for the British pound. This is in addition to the rebound of the EUR / GBP. The expectation for these hours is in the presentation of the budget by the highest authority of Finance, Rishi Sunak.

The dollar’s advance has a headwind with falling Treasury yields. The 10-year rate is below 1.60%, one week after the Federal Reserve’s decision. This is the week of the Bank of Canada and the European Central Bank, next will be the week of the Fed and the Bank of England. On Wednesday at 12:30 GMT, the US durable goods orders report will be released, the highlight of the day.

Technical levels