Pound Sterling Price News and Forecast: GBP/USD slides to multi-day lows, further below mid-1.3500s
|GBP/USD outlook: Top formation risks deeper pullback
Cable extends lower in early Monday, following 0.75% drop on Friday, pressured by profit-taking after repeated failures at 1.3700 zone and comments from US Treasury nominee Yellen that US does not seek weaker dollar.
Fresh weakness broke below 20DMA (1.3560), softening near-term structure, with daily close below here to signal top and increase risk of testing pivotal supports at 1.3466/51 (Fibo 23.6% of 1.2675/1.3711 / Dec 11 trough).
Daily moving averages (5/10/20) turned to negative setup, but larger bulls remain in play and only break of 1.3466/51 pivots would sideline bulls and signal deeper pullback towards 1.3377 (rising 55DMA) and 1.3315 pivot (Fibo 38.2%) in extension. Read more...
GBP/USD slides to multi-day lows, further below mid-1.3500s
The GBP/USD pair lost some additional ground during the early European session and dropped to fresh multi-day lows, around the 1.3535 region in the last hour.
The pair extended previous session's retracement slide from the 1.3700 mark, or multi-year tops and witnessed some follow-through selling on the first day of a new trading week. The prevalent cautious mood benefitted the US dollar's relative safe-haven status and was seen as a key factor dragging the GBP/USD pair lower for the second consecutive session. Read more...
GBP/USD Forecast: Break below ascending trend-line to confirm a bearish double-top
The GBP/USD pair continued with its struggle to find acceptance, or build on the recent bullish momentum beyond the 1.3700 mark and witnessed some long-unwinding trade on Friday. The pair did get a minor lift following the release of monthly UK GDP print, which showed that the economy contracted by 2.6% MoM in November as against -5.7% anticipated. The reading, to a larger extent, was offset by the disappointing releases of Industrial Production and Goods Trade Balance data.
This, along with a broad-based US dollar strength, exerted some heavy pressure on the major. Investors remain concerns about the continuous surge in the number of new COVID-19 cases worldwide. Friday's disappointing US macro data added to market worries about the potential economic fallout from the coronavirus pandemic and weighed on investors' sentiment. Read more...
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