GBPUSD struggles to pick up recovery momentum as it trades below 1.2100

- Advertisement -
  • GBP/USD remains under constant downward pressure on Monday.
  • The dollar retains its strength despite the disappointing data.
  • The focus is on US housing data and the UK jobs report for July.

GBP/USD started the week under bearish pressure and fell to a weekly low of 1.2051 in the European session. Although the pair staged a rebound towards 1.2100, it failed to recapture that level. At the time of writing, the pair had lost 0.3% on the day, trading at 1.2090.

Dollar Takes Advantage of Safe Haven Flows

The negative change in risk sentiment seen on Monday boosted the greenback as a safe haven. Disappointing macroeconomic data releases from China, coupled with escalating geopolitical tensions, are preventing risk-sensitive assets from finding demand.

- Advertisement -

Meanwhile, US data showed on Monday that the Empire State Manufacturing Index fed New York plummeted to -31.3 in August from 11.1 in July. The dollar lost some steam as this figure missed the analyst forecast of 8.5 by a wide margin, but the DXY Dollar Index managed to hold above 106.00.

Later in the session, data from the NAHB index of the US housing market will be seen for a further boost. Meanwhile, Wall Street’s major indices remain on track to open in negative territory, with US stock index futures down 0.45%-0.7% on the day.

- Advertisement -

On Tuesday, the UK Office for National Statistics will report July employment. Investors expect the ILO unemployment rate to remain at 3.8% in the three-month period ending July.

Reuters reported that 30 of 51 economists in a recent survey saw the Bank of England raising its policy rate by 50 basis points in September, but this report did not help sterling find demand.

GBP/USD Technical Levels

GBP/USD

Panorama
Last Price Today 1.2089
Today’s Daily Change -0.0049
Today’s Daily Change % -0.40
Today’s Daily Opening 1.2138
Trends
20 Daily SMA 1.2099
50 Daily SMA 1.2138
100 Daily SMA 1.2425
200 Daily SMA 1.2913
levels
Previous Daily High 1.2217
Previous Daily Minimum 1.21
Previous Maximum Weekly 1.2277
Previous Weekly Minimum 1.2048
Monthly Prior Maximum 1.2246
Previous Monthly Minimum 1,176
Daily Fibonacci 38.2% 1.2145
Daily Fibonacci 61.8% 1.2172
Daily Pivot Point S1 1.2086
Daily Pivot Point S2 1.2034
Daily Pivot Point S3 1.1968
Daily Pivot Point R1 1.2204
Daily Pivot Point R2 1,227
Daily Pivot Point R3 1.2322

Source: Fx Street

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles