Pound Sterling Price News and Forecast: GBP/USD cable hits 11-week low, pressures 200DMA support
|GBP/USD Forecast: Sterling free-falls on Freedom Day, Delta risks drop under double bottom
When the Health Secretary catches covid, it is easy to see that something is wrong. Sajid Javid has been one of the most recent Brits to test positive for coronavirus – roughly 50,000 daily cases are reported in the UK, and hundreds of thousands are called to self-isolated. The system has been "pinging" many who have come in close contact with infected individuals.
This "pingdemic" as the British press dubbed it threatens the normal work of shops and supermarkets just as the country is supposed to celebrate "Freedom Day." Almost all covid-related regulations have expired at midnight, opening the door to a return to normal. However, isolations, high cases – and the risk of an explosion of infections, hospitalizations and deaths are weighing heavily on sterling. Read more...
GBP/USD outlook: Cable hits 11-week low, pressures 200DMA support
Cable extends weakness into third straight day (down nearly 0.5% in Asia/early Europe on Monday) and pressures strong 1.3700 support zone (round-figure/200DMA).
Last week’s break below the triangle and today’s extension below former low at 1.3731 (July 2) is bearish signal.
Daily techs maintain bearish momentum, but oversold conditions suggest that bears may face headwinds on approach to 200DMA pivot, which guards a higher base at 1.3670 (Mar/Apr lows). Read more...
GBP/USD: Break below support at 1.3734 exposes the 200-DMA at 1.3697 – Credit Suisse
GBP/USD has seen a break below 1.3734. Therefore, cable is set to test medium-term support seen starting at the 200-day average at 1.3697 and stretching down to 1.3669/48 – the April low and 38.2% retracement of the rally from September, as reported by the Credit Suisse analyst team.
“Below 1.3742/34, GBP/USD can resolve the range lower for a test of more important medium-term support seen starting at the 200-day average at 1.3697 and stretching down to 1.3669/48 – the April low and 38.2% retracement of the rally from last September.” Read more...
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.