- DXY surpasses 93.00 and hits six-day highs.
- The pound is losing strong, GBP / USD falls to 1.3200 after being rejected above 1.3300.
The GBP / USD is falling from two-month highs on Wednesday and is testing the 1.3200 zone. It hit a new low at 1.3197 and bounced slightly. In the European session, the price had reached 1.3313, the highest level since the beginning of September. Since that peak, it has already retraced more than a hundred pips.
The decline was led by a rise in the dollar, especially against European currencies. The greenback gained even more moment in the last hour, before a fall in the main stock indices of Wall Street. The dollar index is at a six-day high just below 93.20, with bullish tone intact.
Despite the decline in GBP / USD so far this week, the pound remains among the best performing currencies, underpinned by optimism in the markets and the expectation that negotiators from the United Kingdom and the European Union will reach an agreement on Brexit.
From a technical point of view, the pair still has ground to correct without risking the bullish bias toctual. Below 1.3200, the 1.3150 zone appears as strong support, then 1.3060 and the 200 moving average at 1.2925. If this last level is lost, the upward bias would be invalidated. In the opposite direction, a return above 1.3240 would ease the very short-term bearish pressure. A consolidation above the 1.3280 resistance is necessary to enable an extension of the run to the north.
Credits: Forex Street
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