GBP/USD Forecast: Pressure mounts amid fundamental jitters weighing on pound
Premium|Take advantage of 75% OFF on your first month.
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 75% OFF!
Grab this special offer, it's a 1 year for FREE deal! And access ALL our articles and analysis.
CLAIM OFFERGBP/USD Current price: 1.3927
- Tensions around the Northern Ireland Protocol keep hitting the pound.
- The UK will publish May Retail Sales on Friday, foreseen up by 1.6% MoM.
- GBP/USD has room to extend its decline in the near-term.
The GBP/USD pair traded as low as 1.3895 in the aftermath of a hawkish US Federal Reserve, now heading into the Asian opening trading at around 1.3900. The UK did not release macroeconomic figures that could add to the pound’s behaviour. Still, tensions surrounding the Northern Ireland Protocol undermine sterling´s demand.
Meanwhile, the UK reported that new coronavirus cases in the country are doubling every 11 days amid the rapid spread of the Delta variant. The country already delayed lifting lockdown measures and is speeding up immunization. This Friday, the UK will publish May Retail Sales, seen up by 1.6% MoM, and Consumer Inflation expectations, previously at 2.7%.
GBP/USD short-term technical outlook
The GBP/USD pair bounced from the mentioned low, currently trading in the 1.3920 price zone. The risk is skewed to the downside, according to the 4-hour chart, as the pair is far below a bearish 20 SMA, which extended its slump below the longer ones. Technical indicators correct extreme oversold readings but remain well into negative territory, indicating absent buying interest.
Support levels: 1.3895 1.3860 1.3820
Resistance levels: 1.3940 1.3985 1.4030
GBP/USD Current price: 1.3927
- Tensions around the Northern Ireland Protocol keep hitting the pound.
- The UK will publish May Retail Sales on Friday, foreseen up by 1.6% MoM.
- GBP/USD has room to extend its decline in the near-term.
The GBP/USD pair traded as low as 1.3895 in the aftermath of a hawkish US Federal Reserve, now heading into the Asian opening trading at around 1.3900. The UK did not release macroeconomic figures that could add to the pound’s behaviour. Still, tensions surrounding the Northern Ireland Protocol undermine sterling´s demand.
Meanwhile, the UK reported that new coronavirus cases in the country are doubling every 11 days amid the rapid spread of the Delta variant. The country already delayed lifting lockdown measures and is speeding up immunization. This Friday, the UK will publish May Retail Sales, seen up by 1.6% MoM, and Consumer Inflation expectations, previously at 2.7%.
GBP/USD short-term technical outlook
The GBP/USD pair bounced from the mentioned low, currently trading in the 1.3920 price zone. The risk is skewed to the downside, according to the 4-hour chart, as the pair is far below a bearish 20 SMA, which extended its slump below the longer ones. Technical indicators correct extreme oversold readings but remain well into negative territory, indicating absent buying interest.
Support levels: 1.3895 1.3860 1.3820
Resistance levels: 1.3940 1.3985 1.4030
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.