GBP/USD returns below 1.2000 after hitting three-week highs

  • The dollar rises in the market due to a cautious climate in the markets.
  • The two-day FOMC meeting begins.
  • GBP/USD falls after hitting three-week highs.

The GBP/USD is falling on Tuesday, snapping a three-day gain streak in a row. Hours ago, the pair had reached as high as 1.2091, the highest level in three weeks, but then reversed direction. It recently fell to 1.1962, and remains below 1.2000, with a negative intraday tone.

The pair’s decline found support above Monday’s low. Should 1.1960 give way further downside could be expected with the next major support at the 1.1920 area. To the upside, a return above 1.2045 could bring the pound back to strength. Above is the 1.2080/90 area, which contained the recent rally. A confirmation above would point to an extension of the rally.

The dollar gets stronger

The GBP/USD decline was mainly seasoned by a stronger dollar in a context of caution in the markets. Wall Street futures are trading negative. At the same time, demand for Treasury bonds rises. DXY rises after three days and returns above 107.00.

The dollar gains momentum on the day of the start of the FOMC meeting. On Wednesday it is expected that Federal Reserve announce a 75 basis point hike in the interest rate. US data on home prices, new home sales and consumer confidence will be released on Tuesday.

In the UK, this week there will be no key data. The race for the succession of Boris Johnson yesterday had the first television underdog between Rishi Sunak Y Liz Truss.

Technical levels

GBP/USD

Overview
Today last price 1.1981
Today Daily Change -0.0062
Today Daily Change % -0.51
Today daily open 1.2043
trends
Daily SMA20 1.1996
Daily SMA50 1.2248
Daily SMA100 1.2564
Daily SMA200 1.3022
levels
Previous Daily High 1.2087
Previous Daily Low 1,196
Previous Weekly High 1.2064
Previous Weekly Low 1.1854
Previous Monthly High 1.2617
Previous Monthly Low 1.1934
Daily Fibonacci 38.2% 1.2038
Daily Fibonacci 61.8% 1.2009
Daily Pivot Point S1 1.1973
Daily Pivot Point S2 1.1904
Daily Pivot Point S3 1.1847
Daily Pivot Point R1 1.2099
Daily Pivot Point R2 1.2156
Daily Pivot Point R3 1.2226

Source: Fx Street

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