GBP/USD trades with modest losses, below 1.2600 mark

  • GBP/USD found some support near 100-day SMA and staged a modest intraday bounce.
  • The uptick was led by subdued USD demand and was unaffected by softer UK macro data.
  • The increasing risk of a no-deal Brexit capped gains ahead of Monday’s high-level EU-UK talks.

The GBP/USD pair struggled to capitalize on its intraday recovery move and has now retreated around 70 pips from the daily swing highs.

The pair stalled this week’s corrective slide, rather managed to find some support ahead of the 100-day SMA, near the 1.2545 region, and staged a goodish rebound amid a subdued US dollar price action.
The upbeat market mood undermined the safe-haven greenback and was seen as one of the key factors lending some support to the GBP/USD pair.

Despite renewed fears over a second wave of coronavirus infections and the Fed’s gloomy outlook, investors seemed convinced about the prospects of a sharp V-shaped economic recovery. The confidence was evident from a fresh leg up across the global equity market and dented demand for traditional safe-haven currencies.

Meanwhile, the GBP bulls seemed rather unaffected by mostly disappointing UK macro releases – the monthly GDP print and manufacturing/industrial production data. However, the increasing risk of a no-deal Brexit kept a lid on any strong gains. Hence, the key focus will be on the high-level call between the UK and EU leaders on June 15.

Moving ahead, market participants now look forward to the only scheduled release of the preliminary June Michigan Consumer Sentiment Index from the US. The data, along with the broader market risk sentiment will influence the USD price dynamics and produce some trading opportunities on the last day of the week.

Technical levels to watch


Today last price 1.2587
Today Daily Change -0.0015
Today Daily Change % -0.12
Today daily open 1.2602
Daily SMA20 1.2417
Daily SMA50 1.2407
Daily SMA100 1.2545
Daily SMA200 1.2688
Previous Daily High 1.2754
Previous Daily Low 1.2586
Previous Weekly High 1.2732
Previous Weekly Low 1.2326
Previous Monthly High 1.2601
Previous Monthly Low 1.2076
Daily Fibonacci 38.2% 1.2651
Daily Fibonacci 61.8% 1.269
Daily Pivot Point S1 1.2541
Daily Pivot Point S2 1.248
Daily Pivot Point S3 1.2373
Daily Pivot Point R1 1.2709
Daily Pivot Point R2 1.2816
Daily Pivot Point R3 1.2877



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