untitled design

GBPUSD tests levels above 1.1400 as USD trims gains

  • The pound trims losses and breaks above 1.1400 again.
  • Investors remain on the lookout, awaiting the US elections and the CPI results.
  • The Fed’s Barkin warns that the fight against inflation could cause a recession.

The pound has rebounded from session lows in the mid 113.00 area in the US session on Wednesday, returning above 114.00 amid a broad dollar pullback. However, the pair is still down 1% on the daily chart, having peaked just above 1.1600 on Tuesday.

The dollar rebounds in a session of cautious markets

The dollar rallied on Wednesday, with investors reluctant to place significant bets, awaiting the outcome of the US mid-term elections and the release of US consumer inflation figures on Thursday. .

The latest news has shown better than expected results for the Democrats, as the “red wave” announced by the media has not crystallized. However, the final results could still take some time, and key issues such as control of Congress and Biden’s agenda for next year are still uncertain.

On the other hand, US CPI data due out on Thursday could provide more insight into the magnitude of the Federal Reserve’s next interest rate hike. Any surprise in this data could boost dollar volatility.

In a tight macroeconomic calendar, on Wednesday, US Oil Stockpiles have shown a larger than expected increase in the week of November 4th. The US Energy Information Administration has reported an increase of 3.92 billion barrels, well above the consensus of 1.36 million barrels.

In addition, the president of the Richmond Fed, Richard Barkin, has warned that the fight against inflation “could lead to a recession”, since the central bank’s rate hikes are challenged by artificial elements such as “the high saving of consumers and the lack of labor supply”.

Technical levels to watch

GBP/USD

Overview
last price today 1.1411
daily change today -0.0125
daily change today -1.08
Daily opening today 1.1536
Trends
daily SMA20 1.1376
daily SMA50 1.1333
daily SMA100 1.1679
daily SMA200 1.2295
levels
Previous daily high 1.1599
Previous Daily Low 1,143
Previous Weekly High 1.1614
Previous Weekly Low 1.1147
Previous Monthly High 1.1646
Previous Monthly Low 1.0924
Daily Fibonacci of 38.2%. 1.1534
Fibonacci 61.8% daily 1.1494
Daily Pivot Point S1 1.1444
Daily Pivot Point S2 1.1353
Daily Pivot Point S3 1.1275
Daily Pivot Point R1 1.1613
Daily Pivot Point R2 1.1691
Daily Pivot Point R3 1.1782

Source: Fx Street

You may also like

Discover the health benefits of cod
Top News
David

Discover the health benefits of cod

At Easter Friday , many Christian families choose not to eat red meat, prioritizing only fish and seafood. Among them,

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular