Friday’s trade (in GMT terms) saw GBP/USD within the range of 1.3239-1.3338. The pair closed at 1.3268, edging down 0.21% compared to Thursdays close. It has been the 182nd drop in the past 335 trading days and also a third consecutive one. The daily low has been a level unseen since September 1st, when a low of 1.3128 was registered. In weekly terms, GBP/USD lost 0.19% of its value during the past week. It has been the 18th drop in the past 36 weeks, but yet, the smallest one since the week ended on January 31st. The major pair has pared its advance to 0.98% so far during the current month, after losing 0.72% in August.
At 7:22 GMT today GBP/USD was inching up 0.07% on the day to trade at 1.3277. The pair touched a daily high at 1.3287 during the late phase of the Asian trading session, overshooting the daily R2 level, and a daily low at 1.3254 during early Asian trade.
No relevant macroeconomic reports and other events, which may influence GBP/USD trading, are scheduled on Monday.
Correlation with other Majors
Taking into account the business week ended on September 9th and the daily closing levels of the major currency pairs, we come to the following conclusions in regard to the strength of relationship:
GBP/USD to AUD/USD (0.7900, or strong)
GBP/USD to NZD/USD (0.5946, or strong)
GBP/USD to EUR/USD (0.3293, or moderate)
GBP/USD to USD/JPY (-0.5585, or strong)
GBP/USD to USD/CHF (-0.6393, or strong)
GBP/USD to USD/CAD (-0.8449, or very strong)
1. During the examined period GBP/USD moved almost equally in the opposite direction compared to USD/CAD.
2. GBP/USD moved strongly in one and the same direction with NZD/USD and AUD/USD during the past week.
3. GBP/USD moved strongly in the opposite direction compared to USD/JPY and USD/CHF during the period in question.
Bond Yield Spread
The yield on UK 2-year government bonds went as high as 0.191% on September 9th, or the highest level since August 29th (0.202%), after which it closed at 0.181% to add 3.5 basis points (0.035 percentage point) compared to September 8th.
Meanwhile, the yield on US 2-year government bonds climbed as high as 0.802% on September 9th, after which it fell to 0.782% at the close to add 0.008 percentage point compared to September 8th.
The spread between 2-year US and 2-year UK bond yields, which reflects the flow of funds in a short term, narrowed to 0.601% on September 9th from 0.628% on September 8th. The September 9th yield spread has been the lowest one since August 19th, when the difference was 0.591%.
Daily, Weekly and Monthly Pivot Levels
By employing the Camarilla calculation method, the daily levels of importance for GBP/USD are presented as follows:
R1 – 1.3277
R2 – 1.3286
R3 (Range Resistance – Sell) – 1.3295
R4 (Long Breakout) – 1.3322
R5 (Breakout Target 1) – 1.3354
R6 (Breakout Target 2) – 1.3367
S1 – 1.3259
S2 – 1.3250
S3 (Range Support – Buy) – 1.3241
S4 (Short Breakout) – 1.3214
S5 (Breakout Target 1) – 1.3182
S6 (Breakout Target 2) – 1.3169
By using the traditional method of calculation, the weekly levels of importance for GBP/USD are presented as follows:
Central Pivot Point – 1.3318
R1 – 1.3397
R2 – 1.3526
R3 – 1.3605
R4 – 1.3684
S1 – 1.3189
S2 – 1.3110
S3 – 1.2981
S4 – 1.2852
In monthly terms, for GBP/USD we have the following pivots:
Central Pivot Point – 1.3126
R1 – 1.3387
R2 – 1.3634
R3 – 1.3895
R4 – 1.4155
S1 – 1.2879
S2 – 1.2618
S3 – 1.2371
S4 – 1.2123
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
