- The dollar presents mixed results on Wednesday, in another day of limited volume.
- GBP / USD still has a bullish bias, but the momentum is winding down.
The GBP / USD fell to 1.3406 marking a new low for the day, and then rebounded climbing to 1.3440. It is trading at the 1.3430 zone, unchanged for the day and moving without a clear direction.
The dollar finds support in the rise in the yields of Treasury bonds. The 10-year rate is at 1.49%, very close to the recent peak of 1.50%. For its part, the 30-year tranche stands at 1.92%, the maximum in a week. At the same time, the equity markets look stable, validating recent gains, which reduces the strength of the greenback.
On Wednesday there will be no US impact data. The report on the sale of existing homes and the trade balance will be released. Low volume conditions will continue in the markets.
Short-term outlook
Rises from levels below 1.3200 appear to have found a ceiling around 1.3460, which is where the 55-day moving average is past, a reference level and that usually respects the GBP / USD. If there is a clear close above, the pound will be enabled for more rises, with the next strong resistance at 1.3510.
In the opposite direction, Immediate support looms at 1.3400 / 05 and then 1.3375. A confirmation below 1.3350 would call into question the very short-term bullish bias that the pound still has.
Technical levels
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