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GBP / USD marks new lows below 1.3600 on dollar strength

  • The dollar gains momentum despite data below expectations from the US.
  • GBP / USD still positive for the week, still out of power at 1.3700.

He GBP / USD is falling on Friday, retreating after hitting intraday highs in years Thursday above 1.3700. It just fell to 1.3593, the lowest level in three days. It is trading around 1.3610, trying to break away from the lows but still under pressure.

The decline was driven by a general advance of the dollar in the market. Reports for retail sales, producer inflation and the Manufacturing Empire were below expectations. The weakness of the dollar lasted minutes and then resumed the bullish journey.

With the presentation of President-elect Biden’s economic package and Powell’s signs already in the rearview mirror, the bags lost steam. The main Wall Street indices point to an open with falls around 0.35%. The negative climate regarding risk favors the dollar.

In turn, the pound has left behind the positive tone it had in the previous sessions. Besides falling against the dollar, it does the same against the euro. EUR / GBP failed to break 0.8860 and started a rebound.

Short-term technical outlook

GBP / USD is on an uptrend, but rises will remain limited as long as it cannot break above 1.3700. In the very short term, the bias is bearish, and just a rally above 1.3630 would ease downward pressure. To the downside, the next supports are seen at 1.3580 and 1.3540.

Technical levels

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