GBP/USD drops to one-week lows, near 1.3600
The GBP/USD dropped further on the back of a stronger US dollar across the board and bottomed at 1.3610, the lowest level in a week. It remains near the lows, under pressure as the DXY holds firm to gains.
Wall Street soars, higher yields, stronger dollar
The greenback is rising sharply versus G10 currencies despite risk appetite. In Wall Street, the Dow Jones rises by 1.85% and the Nasdaq by 1.20%. Crude oil jumps by more than 2.5% with WTI above $55.00 at one-year highs. The improvement in risk sentiment hurt the US dollar only against emerging market currencies. The DXY climbed to 91.28, the highest level since early December.
GBP/USD outlook: Cable remains within the range after another upside rejection
GBP/USD
Cable bounces in early Tuesday’s trading, following retest of new 32-month high on Monday and subsequent one cent drop.
The pair remains congested within 150-pips range for the second straight week after repeated failures to clearly break through 1.37 resistance zone, with the downside attempts being contained by 20DMA (currently at 1.3647) which marks range’s floor.
Weekly and monthly Doji candles signal strong indecision, as weekly studies are in bullish setup and underpin the action, while monthly chart shows fading bullish momentum and strongly overbought conditions.
