GBP/USD: wait for it, UK data to take 1.36 offers out?
- GBP/USD capped again below 1.3600.
- GBP/USD to get a lift on some positive UK this week?
GBP/USD was capped by offers from 1.3580 yet again for this week in Asia making for a triple top. Currently, GBP/USD is trading at 1.3534, down -0.23% on the day, having posted a daily high at 1.3584 and low at 1.3505, (just ahead of 10-DMA (1.3502).
The greenback was back in the hands of the bulls as US 10yr yields rallied through the psychological 2.5% level and to the highest levels in ten months. The expectations of a Fed hike as soon as March is back to 100% and underpinning the greenback. While oil is a positive factor in the inflation outlook, that is also a potential positive for the pound where the BoE is concerned and all eyes will be on UK industry & trade data Wednesday.
UK data coming up
Meanwhile, markets are concerned that PM May has dismissed several members of her cabinet, (including the latest that Mark Garnier is sent packing, accused last year of sexual misconduct), as we enter the last year of Brexit negotiations.
GBP/USD levels
From a technical point of view, Valeria Bednarik, chief analyst at fXStreet explains that the pair is biased lower:
"According to technical readings in the 4 hours chart, as the pair stands below is 20 SMA that anyway lacks directional strength, while technical indicator should within a bearish territory, the Momentum heading modestly lower and the RSI trying to stabilize around 45. The low posted last week at 1.3495 is the immediate support, with a break below it favouring a continued decline toward the 1.3410 price zone."