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GBP/USD looks to extend the corrective slide towards 1.2900

  • Bears taking back charge, as USD makes a comeback amid better risk tones.
  • 200-DMA near 1.2970 – a tough nut to crack, UK CBI industrial orders in focus.

The  GBP/USD  pair is seen breaking lower from its overnight consolidative range heading into the early European trading, as broad-based US dollar recovery gathers steam amid better risk tones.

The greenback is seen making a comeback against its main peers, tracking the recovery in the Treasury yields, as the risk sentiment improves on the hopes of Chinese stimulus and US-China resolution.

The spot continues to face stiff resistance at the 200-DMA located near 1.2970 levels. However, increased odds of a softer Brexit and the extension of Article 50 will continue to keep the sentiment around the Cable underpinned. Meanwhile, the latest upbeat UK jobs report, with stronger wage growth, brings the BOE rate hike back in play.

Looking ahead, a fresh risk-on wave in Europe could strengthen the USD recovery, which could fuel another leg down in the spot, extending the correction from three-day tops of 1.2976. Data-wise, markets will await the second-linier UK CBI industrial orders data while the speech from the BOE Deputy Governor Broadbent will be closely eyed.

GBP/USD Technical Levels

GBP/USD

Overview:
       Today Last Price:  1.2951
       Today Daily change:  -0.0001  pips
       Today Daily change %:  -0.01%
       Today Daily Open:  1.2952
Trends:
       Daily SMA20:  1.2785
       Daily SMA50:  1.2751
       Daily SMA100:  1.2892
       Daily SMA200:  1.3079
Levels:
       Previous Daily High:  1.2976
       Previous Daily Low:  1.2855
       Previous Weekly High:  1.3002
       Previous Weekly Low:  1.2668
       Previous Monthly High:  1.284
       Previous Monthly Low:  1.2477
       Daily Fibonacci 38.2%:  1.293
       Daily Fibonacci 61.8%:  1.2901
       Daily Pivot Point S1:  1.288
       Daily Pivot Point S2:  1.2807
       Daily Pivot Point S3:  1.2759
       Daily Pivot Point R1:  1.3001
       Daily Pivot Point R2:  1.3049
       Daily Pivot Point R3:  1.3122

 

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