- GBP/USD gains some positive traction on Monday, although it lacks follow-through.
- A combination of factors puts some pressure on the dollar and offers support.
- Bulls seem unimpressed by the UK government’s twist on its fiscal plans.
The pair GBP/USD receives new offers on the first day of a new trading week, although struggles to find acceptance or capitalize on the move above 1.1300. The pair remains above 1.1250 during the early European session, amid modest US dollar weakness.
A strong recovery in global risk sentiment coupled with a softer tone around US Treasury yields turn out to be a key factor putting downward pressure on the haven dollar. That said, a combination of factors help limit deeper losses for the dollar and keep GBP/USD capped, at least for now.
Investors remain concerned about potential economic headwinds from rapidly rising borrowing costs and geopolitical risk. Furthermore, China’s “zero-COVID” policy has fueled recession fears. This, coupled with Fed expectations, should continue to act as a tailwind for US bond yields and offer some dollar support.
The GBP/USD pair, for its part, reacted little to the fact that the new UK finance minister, Jeremy Hunt, reversed the controversial economic package announced in the mini-budget on September 23rd. This, in turn, suggests that the path of least resistance for the pair is to the downside and warrants some caution for aggressive bull traders.
No major macroeconomic data will be released in the UK, while the Empire State Manufacturing Index will be released on the US economic docket later in the early North American session. This, along with US bond yields and general market risk sentiment, could weigh on the dollar and give GBP/USD some momentum.
Technical levels to watch
GBP/USD
Overview | |
---|---|
last price today | 1.1275 |
Today I change daily | 0.0104 |
Today’s daily variation in % | 0.93 |
Daily opening today | 1.1171 |
Trends | |
---|---|
daily SMA20 | 1.1139 |
daily SMA50 | 1.1515 |
daily SMA100 | 1.1847 |
daily SMA200 | 1.2478 |
levels | |
---|---|
Previous daily high | 1.1367 |
Previous Daily Low | 1.1152 |
Previous Weekly High | 1.1381 |
Previous Weekly Low | 1.0924 |
Previous Monthly High | 1.1738 |
Previous Monthly Low | 1.0339 |
Daily Fibonacci of 38.2%. | 1.1234 |
Fibonacci 61.8% daily | 1.1285 |
Daily Pivot Point S1 | 1.1093 |
Daily Pivot Point S2 | 1.1016 |
Daily Pivot Point S3 | 1.0879 |
Daily Pivot Point R1 | 1.1308 |
Daily Pivot Point R2 | 1.1445 |
Daily Pivot Point R3 | 1.1522 |
Source: Fx Street

With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.