GBP/USD Forecast: Further declines likely in the near-term
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERGBP/USD Current price: 1.3879
- The Pound remains pressured by the BOE’s dovish surprise.
- UK June GFK Consumer Confidence Survey printed at -9, worse than the -7 expected.
- GBP/USD is technically bearish, could extend its decline to sub-1.3800.
The GBP/USD pair fell for a second consecutive day, ending Friday at 1.3876. The pound kept suffering from the outcome of the Bank of England’s monetary policy, which was mostly dovish, quite the opposite to the hawkish tone expected by market players. Limited demand for the greenback prevented the pair from falling further.
Data coming from the UK failed to impress, as the June GFK Consumer Confidence Survey printed at -9, worse than the -7 expected. The BOE released the Q2 Quarterly Bulletin, highlighting the growing financial inequality among householders within the pandemic context. The country won’t publish macroeconomic data on Monday.
GBP/USD short-term technical outlook
The GBP/USD has broken below an ascendant trend line coming from 1.2075, the low from May 17, currently at around 1.3950. The daily chart shows that the 100 SMA converges with the mentioned trend line, while the 20 SMA heads firmly lower above it. Meanwhile, technical indicators resumed their declines within negative levels after corrective extreme oversold conditions, all of which skews the risk to the downside. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 SMA directionless at around 1.3940. Technical indicators maintain their bearish slopes within negative levels, favoring another leg lower.
Support levels: 1.3840 1.3795 1.3750
Resistance levels: 1.3905 1.3950 1.4010
GBP/USD Current price: 1.3879
- The Pound remains pressured by the BOE’s dovish surprise.
- UK June GFK Consumer Confidence Survey printed at -9, worse than the -7 expected.
- GBP/USD is technically bearish, could extend its decline to sub-1.3800.
The GBP/USD pair fell for a second consecutive day, ending Friday at 1.3876. The pound kept suffering from the outcome of the Bank of England’s monetary policy, which was mostly dovish, quite the opposite to the hawkish tone expected by market players. Limited demand for the greenback prevented the pair from falling further.
Data coming from the UK failed to impress, as the June GFK Consumer Confidence Survey printed at -9, worse than the -7 expected. The BOE released the Q2 Quarterly Bulletin, highlighting the growing financial inequality among householders within the pandemic context. The country won’t publish macroeconomic data on Monday.
GBP/USD short-term technical outlook
The GBP/USD has broken below an ascendant trend line coming from 1.2075, the low from May 17, currently at around 1.3950. The daily chart shows that the 100 SMA converges with the mentioned trend line, while the 20 SMA heads firmly lower above it. Meanwhile, technical indicators resumed their declines within negative levels after corrective extreme oversold conditions, all of which skews the risk to the downside. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 SMA directionless at around 1.3940. Technical indicators maintain their bearish slopes within negative levels, favoring another leg lower.
Support levels: 1.3840 1.3795 1.3750
Resistance levels: 1.3905 1.3950 1.4010
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.