“¢ Some renewed USD weakness helps regain positive traction on Friday.
“¢ Traders seemed reluctant to place aggressive bets ahead of key event risks.
The GBP/USD pair quickly reversed a dip to the 1.2800 neighborhood and rallied around 50-pips in the past hour or so.
A fresh wave of US Dollar selling emerged during the mid-European session, despite a goodish pickup in the US Treasury bond yields, and was seen as one of the key factors behind the pair’s latest leg of the sudden spike. The uptick, however, lacked any obvious fundamental catalyst and hence, remained capped below Wednesday’s swing low.
Moreover, traders also seemed reluctant to place any aggressive bets ahead of today’s important speeches by the BoE Chief Economist Andy Haldane and the Fed Chair Jerome Powell at the annual Economic Policy Symposium, in Jackson Hole.
Ahead of the key event risks, the release of US durable goods orders data might also influence the USD price dynamics and eventually assist traders to grab some short-term trading opportunities on the last trading day of the week.
Technical outlook
Yohay Elam, FXStreet’s own Analyst writes, “1.2940 was the peak seen in recent days. It is followed by the round number of 1.3000 and then by 1.3050 which worked in both directions before the recent fall.”
“Support awaits at the round 1.2800 level which supported the pair in recent hours. It is backed up by the 50 Simple Moving Average on the four-hour chart. Further down, 1.2760 held the pair down in mid-August and now serves as a support. Lower, 1.2730 was a stepping stone on the way up later in the month. The 2018 low of 1.12662 is next,” he adds further
Share
