Pound Sterling Price News and Forecast: GBP/USD bears now await a break below 100-day SMA support
|GBP/USD outlook: Bears crack key supports and look to continue larger downtrend
Cable extends weakness into the fourth straight day and tested key support at 1.3670 (Mar 25 low / 100DMA) in early European trading on Friday. Bears emerged from the daily cloud (cloud base lays at 1.3712) after trading within thick cloud for two weeks, generating bearish signal for extension of six-week downtrend from 1.4238 (2021 high) which requires confirmation on weekly close below 1.3670 pivots.
Cable is weighed by the issues with the AstraZeneca vaccine as the EU imposed certain age restrictions for the vaccine but left to the member countries to decide, with rising violence in Northern Ireland additionally pressuring the pound. Read more...
GBP/USD Price Analysis: Bears now await a break below 100-day SMA support
The GBP/USD pair witnessed some aggressive selling on the last trading day of the week and tumbled to over two-month lows, around the 1.3670 region. A strong pickup in the US Treasury bond yields assisted the US dollar to stage a solid rebound from two-week lows. This, in turn, was seen as a key factor that exerted some heavy downward pressure on the GBP/USD pair.
Sustained weakness below the 1.3700 mark further aggravated the intraday bearish pressure. The GBP/USD pair, however, managed to find some support near the 100-day SMA and recovered around 50 pips, though lacked any follow-through. The pair now seems to have stabilized near the 50% Fibonacci level of the 1.3188-1.4243 strong move up. Read more...
GBP/USD set to move with a heavy topside this month – Mizuho
The GBP/USD pair moved bearishly in March. In the view of economists at Mizuho Bank, the cable will continue moving with a heavy topside in April. After rising until February, the pair has since undergone some adjustment while being swayed by dollar trends.
“The markets have been impressed by the high pace of COVID-19 vaccinations in the UK, but this seems to be growing less potent as a factor impacting trading. Of course, it will only be natural if this factor fades away as other countries also implement vaccination programs (with the Biden administration’s plans to increase vaccination rates also likely to have an impact).” Read more...
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