GBPUSD rebounds back above 1.1450 on a quiet session

• GBPUSD with a bearish intraday bias, Pound to strengthen above 1.1550.
• DXY up for the first time after two negative days on US Election Day.
• Americans vote for a new Congress and governorships.

The GBPUSD hit a fresh daily low at 1.4128 on Tuesday and then rose back above 1.1450. It remains in negative territory for the day, pulling back after being unable to hold above 1.1500.

The key driver in cable's retreat is a stronger US dollar, even as US yields decline. US mid-term elections are taking place. Republicans are poised for a victory according to the latest polls. Americans are voting to elect one-third of the Senate, all seats of the House of Representatives, and more than 30 governors. The election results will likely have significant implications for Biden's administration agenda.

With a cautious tone amid US elections, price action across financial markets remains limited. US yields are modestly lower while the DXY gains 0.12%, rising after two days of sharp declines.

Regarding US economic data released Tuesday, the NFIB Business Optimism Index declined to 91.3 in October from 92.1. This week's key number will be the Consumer Price Index on Thursday, which could critically impact markets and expectations about Federal Reserve's monetary policy.

Earlier today, Bank of England Chief Economist Huw Pill said the central bank needs to raise rates further to tighten monetary policy. "At some point, we need to think about broader economic outlook".

Bearish intraday, above 1.1400

The GBPUSD is moving with a bearish intraday bias, but so far it has remained above an important support area between 1.1400 and 1.1420. A break lower could trigger more losses, toward the 20-Simple Moving Average in 4-hour charts at 1.1350.

On the upside, a firm break above 1.1550 would strengthen the outlook for the Pound, targeting 1.1600 and probably a test of the monthly high at the 1.1650 zone.

Technical levels