- GBP/USD heads to test daily lows after being unable to hold above 1.3000.
- US dollar rises across the board, DXY gains the most in a week.
The GBP/USD pair weakened after being unable to hold on top of 1.3000 and pulled back. It fell to 1.2980 and it was trading at 1.2985, holding a bearish intraday tone, still above daily lows. Earlier it bottomed at 1.2959 and bounced to the upside. The recovery was limited by the 20-hour moving average at 1.3005 and lost momentum.
The greenback is up across the board amid trade war tensions from the US and higher US yields. While the pound, despite falling versus the US dollar is up against the euro. The slide of EUR/GBP limited the downside in GBP/USD.
Despite Friday’s slide, cable is headed toward the third weekly gain in-a-row as it continues to recover from the 1-year low it reached weeks ago. On a monthly basis, the recovery was not enough to erase August losses so the Pound is on its way to the fifth consecutive monthly slide.
GBP/USD Short-term technical levels
To the downside, immediate support is seen at daily lows at 1.2955/60 followed by 1.2935 (Aug 22 low) and 1.2900. On the upside, resistance levels might lie at 1.3000/10, 1.3040/45 (weekly high) and 1.3070.
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