- GBP trims gains and falls to session lows at 1.1450.
- Bright US data dampens hopes of a Fed pivot in December.
- GBP/USD: Break of 1.1440 will nullify positive bias — UOB.
The pound has lost almost 100 points in a matter of minutes, after the publication of a series of positive US macroeconomic indicators. The pair has fallen from levels near 1.1550, giving up all the ground gained during the Asian and European sessions on Tuesday, reaching lows at 1.1455.
US data gives room for more aggressive Fed tightening
A string of better-than-expected macroeconomic releases have boosted confidence in the US economy’s momentum, easing concerns about a possible slowdown triggered by earlier disappointing releases and clearing the way for the Federal Reserve to extend its aggressive tightening path further. of November. This has caused the dollar and US Treasuries to soar.
Business activity in the manufacturing sector has exceeded expectations in October. The US global manufacturing PMI improved to 50.4 in October, against market expectations of 49.9, and the ISM manufacturing PMI confirmed the positive news, recording a reading of 50.2 against 50 expected by the market consensus. .
In addition, the JOLTS job offers have shown the strength of the US labor market, despite the Fed’s efforts to cool it down. JOLTS job postings increased to 10.7 million in September, up from 12.2 million in August, and against market expectations for a drop to 10 million.
GBP/USD: A reversal below 1.1440 would negate the positive bias — UOB
Forex analysts at UOB maintain a positive outlook on the pair as long as the 1.1440 level is not broken: “We remain positive on GBP for now and only a break of 1.1440 (no change in the ‘strong’ level). support” from last Friday) would indicate that the GBP does not advance further. That being said, as the upward momentum has subsided, the chances of the GBP rallying to the main resistance at 1.1760 have diminished.”
Technical levels to watch
GBP/USD
Overview | |
---|---|
last price today | 1.1455 |
daily change today | -0.0017 |
daily change today | -0.15 |
Daily opening today | 1.1472 |
Trends | |
---|---|
daily SMA20 | 1.1306 |
daily SMA50 | 1.1375 |
daily SMA100 | 1.1728 |
daily SMA200 | 1.2356 |
levels | |
---|---|
Previous daily high | 1.1614 |
Previous Daily Low | 1,146 |
Previous Weekly High | 1.1646 |
Previous Weekly Low | 1.1258 |
Previous Monthly High | 1.1646 |
Previous Monthly Low | 1.0924 |
Daily Fibonacci of 38.2%. | 1.1519 |
Fibonacci 61.8% daily | 1.1555 |
Daily Pivot Point S1 | 1.1417 |
Daily Pivot Point S2 | 1.1362 |
Daily Pivot Point S3 | 1.1263 |
Daily Pivot Point R1 | 1,157 |
Daily Pivot Point R2 | 1.1669 |
Daily Pivot Point R3 | 1.1724 |
Source: Fx Street
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