GBP/USD reacts to global events

Source: Dukascopy Bank SA


The financial markets have ignored technical levels due to fundamental events taking place. On Friday, the US employment data caused high volatility and an eventual decline of the US Dollar. On Monday, the Dollar recovered because of a run to safety that started due to the war in Israel.

During the events the GBP/USD pair's channel down pattern initially held. However, it was broken after the US employment release. On Monday, a decline of the rate was taking place and the technical indicators had resumed to provide resistance and support.

A resumption of the GBP recovery against the US Dollar could face resistance in the 1.2220 and 1.2260 levels. These levels have acted as resistance on Friday and Monday. Higher above, note the 1.2300 mark and the weekly R1 simple pivot point at 1.2317.

However, in the case of a decline of the GBP/USD currency exchange rate, the 50, 100 and 200-hour simple moving averages together with he weekly simple pivot point are all set to act as support in the 1.2150/1.2200 range. Below this range, note the 1.2120 level, which has acted as support throughout the prior week.
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Mon, 09 Oct 2023 13:24:10 GMT

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EUR/USD reacts to fundamentals

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