GBP/USD Current price: 1.3879
- The Pound remains pressured by the BOE’s dovish surprise.
- UK June GFK Consumer Confidence Survey printed at -9, worse than the -7 expected.
- GBP/USD is technically bearish, could extend its decline to sub-1.3800.
The GBP/USD pair fell for a second consecutive day, ending Friday at 1.3876. The pound kept suffering from the outcome of the Bank of England’s monetary policy, which was mostly dovish, quite the opposite to the hawkish tone expected by market players. Limited demand for the greenback prevented the pair from falling further.
Data coming from the UK failed to impress, as the June GFK Consumer Confidence Survey printed at -9, worse than the -7 expected. The BOE released the Q2 Quarterly Bulletin, highlighting the growing financial inequality among householders within the pandemic context. The country won’t publish macroeconomic data on Monday.
GBP/USD short-term technical outlook
The GBP/USD has broken below an ascendant trend line coming from 1.2075, the low from May 17, currently at around 1.3950. The daily chart shows that the 100 SMA converges with the mentioned trend line, while the 20 SMA heads firmly lower above it. Meanwhile, technical indicators resumed their declines within negative levels after corrective extreme oversold conditions, all of which skews the risk to the downside. The 4-hour chart shows that the pair is developing below all of its moving averages, with the 20 SMA directionless at around 1.3940. Technical indicators maintain their bearish slopes within negative levels, favoring another leg lower.
Support levels: 1.3840 1.3795 1.3750
Resistance levels: 1.3905 1.3950 1.4010
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.