Yesterday’s trade saw GBP/USD within the range of 1.5053-1.5137. The pair closed at 1.5123, going up 0.24% on a daily basis. It has been the first gain in the past four trading days. The daily low was a higher-low test of the low from Tuesday, while the latter has been the lowest level since November 9th, when a daily low of 1.5038 was registered.
At 8:16 GMT today GBP/USD was losing 0.17% for the day to trade at 1.5101. The pair touched a daily low at 1.5091 at 8:01 GMT, overshooting the range support level (S3).
Today GBP/USD trading may be influenced by the releases listed below.
Fundamentals
United Kingdom
Financial Stability Report
Released twice every year by the Bank of England and under the guidance of the interim Financial Policy Committee, the Financial Stability Report, reflects the Committees outlook assessment of the stability and resilience of the financial sector in the country at the time the report is prepared. This document also shows the policy actions that are to be taken in order to diminish risks to stability. A hawkish financial outlook by the Committee is usually pound positive, while a dovish view usually has a bearish effect on the national currency. The report is to be published at 9:30 GMT.
Thanksgiving Day
Today is the Thanksgiving Day national holiday in the United States, which commemorates harvest. Banks in the country are to remain closed.
Bond Yield Spread
The yield on UK 2-year government bonds went as high as 0.639% on November 25th, or the highest level since November 23rd (0.656%), after which it closed at 0.634% to add 1.8 basis points (0.018 percentage point) compared to November 24th, while marking a second straight trading day of increase.
The yield on US 2-year government bonds climbed as high as 0.946% on November 25th, after which it closed at 0.934% to add 0.004 percentage point compared to November 24th. It has been the eighth consecutive trading day of increase.
The spread between 2-year US and 2-year UK bond yields, which reflects the flow of funds in a short term, narrowed to 0.300% on November 25th from 0.314% on November 24th. The November 25th yield spread has been the lowest one since November 19th, when the difference was 0.259%.
Meanwhile, the yield on UK 10-year government bonds soared as high as 1.896% on November 25th, or the highest level since November 23rd (1.924%), after which it slid to 1.894% at the close to add 2.8 basis points (0.028 percentage point) compared to November 24th. It has been the first gain in the past six trading days.
The yield on US 10-year government bonds climbed as high as 2.248% on November 25th, after which it slipped to 2.234% at the close to lose 0.005 percentage point compared to November 24th. It has been the third consecutive trading day of increase.
The spread between 10-year US and 10-year UK bond yields narrowed to 0.340% on November 25th from 0.373% on November 24th. The November 25th yield difference has been the lowest one since November 17th, when the spread was 0.287%.
Daily and Weekly Pivot Levels
By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:
R1 – 1.5131
R2 – 1.5138
R3 (range resistance) – 1.5147
R4 (range breakout) – 1.5170
S1 – 1.5115
S2 – 1.5108
S3 (range support) – 1.5100
S4 (range breakout) – 1.5077
By using the traditional method of calculation, the weekly pivot levels for GBP/USD are presented as follows:
Central Pivot Point – 1.5227
R1 – 1.5302
R2 – 1.5411
R3 – 1.5486
S1 – 1.5118
S2 – 1.5043
S3 – 1.4934
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