GBP/USD hovering around 1.3740, unable to profit from DXY slide

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  • Pound and US dollar among worst performers on Thursday.
  • GBP/USD holds a bearish short-term bias,  eyes last week lows.

The GBP/USD pair is flat on Thursday, hovering around 1.3740. The pair peaked at 1.3782 during the European session and then bottomed at 1.3717, the lowest level since March 31. The pound was able to defend the 1.3725 area while at the same time unable to benefit from a weaker US dollar.

A break of GBP/USD under 1.3700 would deteriorate the pound’s short-term technical outlook, exposing the March low at 1.3670. The bias at the moment favors the downside, but the pair is showing enough strength to hold for now. A recovery back above 1.3815 would be a positive for the bulls, suggesting a test of 1.3850.

Cable ignores DXY slide

The US dollar is among the worst performers in the market on Thursday, weakened amid lower US yields. The 10-year yield bottomed at 1.62%, a fresh weekly low. The DXY dropped to 92.07, the lowest in two weeks. Economic data from the US came in below expectations, with initial jobless claims rising unexpectedly to the highest level in three weeks.

The pound continues to be affected by AstraZeneca’s COVID-19 vaccine drama. “The UK recommended refraining from using AstraZeneca’s jab in the under 30s. While Britain is ahead in vaccinating its population against COVID-19, fear that AZ’s immunizations may cause blood clots may put off some people from this inoculation and perhaps others”, explained Yohay Elam, Analyst at FXStreet.

Technical levels

 

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