Pound Sterling Price News and Forecast: GBP/USD reveals pattern
|GBP/USD Forecast: Bulls seem non-committed after dovish BoE
The GBP/USD pair kicked off the new week on a positive note and touched an intraday high level of 1.3939 during the early European session. The British pound was supported by the optimism that the UK remains on track to end COVID-19 measures in July. The UK Prime Minister Boris Johnson has said the remaining restrictions will be lifted on 19 July but has also promised a data review to see if this can happen two weeks earlier on 5 July. This, along with a subdued US dollar demand, provided a goodish intraday lift to the major.
The USD remained on the defensive amid mixed signals on the US inflation and was further pressured by a fresh leg down in the US Treasury bond yields. Read more...
GBP/USD analysis: Reveals pattern
On Monday, a channel down pattern was spotted. The pattern was formed in the aftermath of the rate passing the resistance of the 1.3940 level and testing the 1.4000 mark. In the meantime, note that the pattern's upper trend line was being strengthened by the resistance of the 200-hour simple moving average.
If the pattern's resistance holds on Monday, the rate would decline to the support of the weekly simple pivot point at 1.3892. In the case of the pivot point being passed, the GBP/USD would have no support, except the lower trend line of the channel down pattern. Read more ...
GBP/USD surrenders a major part of its intraday gains, back below 1.3900 mark
The GBP/USD pair retreated over 50 pips from daily swing highs and was last seen trading with modest gains, just below the 1.3900 mark.
The pair struggled to capitalize on its intraday positive move, instead met with some fresh supply near the 1.3940 region amid a modest pickup in the US dollar demand. Despite mixed signals on the US inflation, investors remain concerned that the Fed will tighten its monetary policy if price pressures continue to intensify. This helped offset a fresh leg down in the US Treasury bond yields and extended some support to the greenback. Read more ...
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