GBP/USD Forecast: Pressure mounts on the pound
Premium|Take advantage of 50% OFF on your first month.
50% OFF and access to ALL our articles and insights.
You have reached your limit of 5 free articles for this month.
Take advantage of the Special Price just for today!
50% OFF and access to ALL our articles and insights.
Subscribe to PremiumGBP/USD Current price: 1.4107
- UK Prime Minister Johnson confirmed lockdown measures extend to July 19.
- The UK will publish employment-related data on Tuesday.
- GBP/USD could fall towards the 1.4000 figure and beyond.
The GBP/USD pair fell to a fresh two-month low of 1.4069 amid expectations the UK government will delay the final stage of easing lockdown measures, from June 21 to July 19, to enable vaccine rollout. Prime Minister Boris Johnson addressed the nation and confirmed the new date. The pair trimmed losses and turned positive with Wall Street’s opening, ending the day just above the 1.4100 threshold.
Comments from BOE’s Governor Andrew Bailey also weighed on the pound, as he said that the size of the central bank’s balance sheet would be a major issue over the next five years. On Tuesday, the UK will publish its latest employment figures. The ILO Unemployment Rate for the three months to April is foreseen at 4.7%, below the previous 4.8%. The May Claimant Count Change is seen up by 25K, following the previous -15.1K reading.
GBP/USD short-term technical outlook
The GBP/USD pair is still at risk of falling further. The 4-hour chart shows that buying interest is aligned around a mildly bullish 200 SMA, but also that the pair was unable to advance beyond a bearish 20 SMA. The Momentum indicator gyrated south, currently within negative levels, while the RSI consolidates around 44, all of which favor a bearish continuation without confirming it yet.
Support levels: 1.4070 1.4020 1.3970
Resistance levels: 1.4130 1.4180 1.4225
GBP/USD Current price: 1.4107
- UK Prime Minister Johnson confirmed lockdown measures extend to July 19.
- The UK will publish employment-related data on Tuesday.
- GBP/USD could fall towards the 1.4000 figure and beyond.
The GBP/USD pair fell to a fresh two-month low of 1.4069 amid expectations the UK government will delay the final stage of easing lockdown measures, from June 21 to July 19, to enable vaccine rollout. Prime Minister Boris Johnson addressed the nation and confirmed the new date. The pair trimmed losses and turned positive with Wall Street’s opening, ending the day just above the 1.4100 threshold.
Comments from BOE’s Governor Andrew Bailey also weighed on the pound, as he said that the size of the central bank’s balance sheet would be a major issue over the next five years. On Tuesday, the UK will publish its latest employment figures. The ILO Unemployment Rate for the three months to April is foreseen at 4.7%, below the previous 4.8%. The May Claimant Count Change is seen up by 25K, following the previous -15.1K reading.
GBP/USD short-term technical outlook
The GBP/USD pair is still at risk of falling further. The 4-hour chart shows that buying interest is aligned around a mildly bullish 200 SMA, but also that the pair was unable to advance beyond a bearish 20 SMA. The Momentum indicator gyrated south, currently within negative levels, while the RSI consolidates around 44, all of which favor a bearish continuation without confirming it yet.
Support levels: 1.4070 1.4020 1.3970
Resistance levels: 1.4130 1.4180 1.4225
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.