GBP/USD steady around crucial 1.3600 level
- GBP/USD advances for the third day in a row break above 1.3600.
- Dismal market sentiment spurred safe-haven flows.
- GBP/USD: Bullish above 1.3600; on the other hand, it will be bearish.
The GBP/USD is climbing for the third consecutive day, trimming some of last week’s losses, trading at 1.3613, up almost half percent, at the time of writing.
The market sentiment is downbeat, and risk flows to safe-haven assets boosted the Swiss franc, leaving the US dollar behind. Evergrande’s worries dent investor sentiment. Further, inflationary pressures, energy crisis, and US debt-ceiling concerns keep traders on the sidelines.
The US Dollar index, which tracks the greenback’s performance over six of its rivals, is down 0.30%, sitting at 93.79, whereas the US 10-year Treasury yield is up to two basis points (bps), currently at 1.484%, below 1.50% for the second consecutive day.
In the UK economic docket, there was no macroeconomic news featured. On the other hand, the US Census Bureau released the Factory Orders for August, which increased by 1.2%, better than the 0.9% foreseen by economists. The report failed to boost the US dollar, as traders await the US Nonfarm Payrolls report unveiled on Friday.
GBP/USD Price Forecast: Technical outlook
Daily chart
The British pound push above 1.3600 could open the door for further gains, but a daily close above the latter is required. In case of that outcome, the first resistance level would be the September 24 low at 1.3657. A breach of that level could push the pair towards key supply levels like the figure at 1.3700 and the 50-day moving average at 1.3762.
On the flip side, failure at 1.3600 would exert additional downward pressure on the GBP/USD pair. The first demand zone would be the July 20 low at 1.3571. A break of that level would expose 1.3500, followed by the October first low at 1.3433.
The Relative Strength Index is at 45, with an upside slope, though it remains bearish as it is still beneath the 50-midline.
KEY ADDITIONAL LEVELS TO WATCH