GBP/USD Forecast: Pressure mounts amid fundamental jitters weighing on pound

Valeria Bednarik FXStreet

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

View Live Chart for the GBP/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.