GBP/USD Current price: 1.3818
- BOE’s Saunders said policymakers likely to discuss tapering in their upcoming meetings.
- The UK reported a record of over 48,500 new coronavirus contagions in 24 hours.
- GBP/USD is technically bearish and could reach fresh monthly lows.
The GBP/USD pair peaked at 1.3898 during London trading hours, as the pound got a boost from comments from Michael Saunders, policymaker from the Bank of England. He said that during the upcoming months, they would discuss whether to curtail the current assets purchase program and/or take further policy action next year. He clarified that if the “bank rate does rise in the next year or so, it is likely that any rise would be relatively limited.” The pair changed course afterwards as the dollar gathered strength on the back of a souring market’s mood. Stocks edged lower in Europe, accelerating their slumps ahead of London’s close. Wall Street also suffered but ended the day mixed.
Meanwhile, the UK reported a record of over 48,500 new coronavirus contagions in the past 24 hours, although only four persons were admitted to ICU. Roughly 69% of the UK’s population has received at least one dose of a coronavirus vaccine, while around 53% have received two shots. The UK macroeconomic calendar will remain empty on Friday.
GBP/USD short-term technical outlook
The GBP/USD pair trades near the 1.3800 level, bearish in the near-term. The 4-hour chart shows that the pair briefly spiked above its 20 and 100 SMAs, both converging around 1.3845. The Momentum indicator turned marginally higher within negative levels, but the RSI indicator accelerated its slump and stands around weekly lows, anticipating a steeper decline ahead, mainly on a clear break through the 1.3790 level.
Support levels: 1.3790 1.3740 1.3685
Resistance levels: 1.3945 1.3990 1.4035
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.