Pound Sterling Price News and Forecast: GBP/USD remains vulnerable to slide further
|GBP/USD Forecast: Selling opportunity? Dead-cat bounce leaves critical support in danger
Every trend has a countertrend – yet if the move in the opposite direction has no justification, it could prove short-lived. GBP/USD has bounced off the fresh five-month low of 1.3570 as the dollar has taken a break from gains. The greenback is falling as Treasury yields rise – a change in correlation. It seems that demand for bonds and the dollar are now linked.
Markets' "Turnaround Tuesday" has helped cable climb from the abyss, but it is hard to find any noteworthy fundamental change that justifies an upswing. First and foremost, COVID-19 cases remain elevated in Britain, nearing 50,000 per day once again. Vaccinations slow the increase in hospitalizations and deaths, but cannot fully keep them down. Read more...
GBP/USD Price Analysis: Remains vulnerable to slide further
The GBP/USD pair once again showed some resilience below the 1.3600 mark and quickly recovered around 40-50 pips from the daily swing lows. The pair climbed back closer to the top end of its daily trading range, though lacked any follow-through buying and was last seen hovering around the 1.3630 region.
A generally positive risk tone – as depicted by a strong follow-through rally in the equity markets – prompted some profit-taking around the safe-haven US dollar. This, in turn, was seen as a key factor that extended some support to the GBP/USD pair. That said, the impasse over the Northern Ireland Protocol of the Brexit deal, along with the resurgence of the COVID-19 infections in the UK acted as a headwind for the British pound and capped gains. Read more...
GBP/USD struggles near multi-month lows, around 1.3600 mark
The GBP/USD pair remained on the defensive through the early European session and was last seen hovering near the lower end of its intraday trading range, just below the 1.3600 mark.
The pair struggled to capitalize on the previous day's bounce from the lowest level since February 4 and edged lower for the fifth consecutive session on Wednesday. This also marked the seventh day of a negative move in the previous eight and was sponsored by a combination of factors. 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.