GBP/USD refreshes session

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  • GBP / USD finds decent support near the 1.2900 marks and bounces more than 70 pips from the lows.
  • The USD struggled to capitalize on the post-FOMC recovery move and helped gain traction.
  • Some positive Brexit developments further supported the British pound ahead of the Bank of England.

The GBP / USD pair managed to regain initially lost ground and was last seen trading near the upper end of its daily trading range, around the 1.2970-75 region.

The pair witnessed some selling during the first half of Thursday’s trading action and extended the previous day’s retracement slide from the key psychological mark of 1.3000, or weekly highs. The US dollar added to the post-FOMC recovery movement and received an additional boost from weaker global risk sentiment. This, in turn, was seen as a key factor putting pressure on the GBP / USD pair.

The dollar, however, was unable to preserve its gains, instead finding fresh supply at higher levels and helping the GBP / USD find decent support near the 1.2900 round mark. The pair bounced more than 70 pips from daily lows and was supported by reports that Britain offered tentative concessions on fishing in trade talks with the European Union last week.

The latest comments from European Union Brexit negotiator Michel Barnier further increased optimism and supported the British pound. It was noted that Barnier said the UK’s move on fisheries is a ray of hope and still believes a deal is possible. Meanwhile, the advantage seemed limited before the central bank’s key event: the Bank of England’s monetary policy update.

The UK central bank is not expected to change its policy settings, but it will provide signals to add more stimulus to support the economy from a potential Brexit shock. Therefore, the key focus will be on the accompanying statement, which, along with the incoming Brexit-related headlines, will influence short-term sterling price dynamics and provide further directional momentum to the GBP / USD pair.

Technical levels to watch

Today last price1.2969
Today Daily Change0.0001
Today Daily Change %0.01
Today daily open1.2968
TRENDS
Daily SMA201.312
Daily SMA501.2986
Daily SMA1001.2708
Daily SMA2001.2733
LEVELS
Previous Daily High1.3007
Previous Daily Low1.2875
Previous Weekly High1.3279
Previous Weekly Low1.2763
Previous Monthly High1.3396
Previous Monthly Low1.2982
Daily Fibonacci 38.2%1.2957
Daily Fibonacci 61.8%1.2926
Daily Pivot Point S11.2893
Daily Pivot Point S21.2818
Daily Pivot Point S31.2761
Daily Pivot Point R11.3025
Daily Pivot Point R21.3082
Daily Pivot Point R31.3156

About the author

Nafees Saifi // entrepreneur, author, trainer, and stocks and FX trader. 
Nafees Saifi is a professional FX trader from, India. Nafees has extensive experience trading commodities, bonds, and equity futures in the Asian, European, and US markets. Nafees holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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