The British pound has moved back above the 1.3400 level against the U.S dollar, provoked by the U.S dollar index retreating back towards the 93.00 mark, and investor’s worries over the lack of details from the Trump administrations proposed tax reforms.
Today’s trading sentiment surrounding the GBPUSD pair is largely neutral, with the pair currently awaiting key second quarter gross domestic figures from the United Kingdom later today.
Yesterday the GBPUSD pair quickly recovered, after briefly falling below its 200-week moving average and hitting a two-week trading low, at 1.3342.
During the U.S session, the intraday rally above 1.3400 was capped by the 61.8% Fibonacci retracement of 1.3146 low to the 1.3653 high, at 1.3443.
Key technical support is found at the pairs daily pivot point, at 1.3413 and the key 1.3400 level. Once below the 1.3400 level, critical weekly support is found at 1.3380 and the pairs 200-week moving average, at 1.3363.
To the upside, the 1.3443 level remains the key to further GBPUSD upside today. Key technical resistance above 1.3443 is found at the pairs 200-hour moving average at 1.3483, and ascending channel-top, at 1.3504.
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