GBP/USD Forecast: Poised to extend slide sub-1.3800

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3843

Tension with the EU amid Northern Ireland barriers hurt the pound.
UK Q1 Gross Domestic Product expected to be confirmed at -1.5% QoQ.
GBP/USD is poised to extend its decline toward the 1.3700 price zone.

The GBP/USD pair returned to its bearish path on Tuesday, ending the day in the 1.3840 price zone after bottoming for the day at 1.3813. The slide was linked to the dollar’s demand rather than UK news. Anyway, coronavirus and Brexit-related headlines keep affecting Sterling. UK Prime Minister Boris Johnson’s spokesman said that the government expects to agree with the EU an extension to the grace period on custom checks on chilled meats heading to Northern Ireland soon.

Data wise, the UK published May Mortgage Approvals, which improved to 87.5K, beating expectations. Consumer Credit in the same month was also better than anticipated, printing at £0.28 billion. On Wednesday, the country will publish the final reading of the first quarter Gross Domestic Product, expected to be confirmed at -1.5%, and Total Business Investment for the same quarter.

GBP/USD short-term technical outlook

The GBP/USD pair is poised to extend its decline in the near-term. The 4-hour chat shows that the 20 SMA heads firmly lower, currently at around 1.3880, below the longer moving averages, which also head south. Technical indicators, in the meantime, have recovered modestly from their daily lows but remain within negative levels, reflecting limited buying interest. A steeper decline seems likely if the pair slides below the 1.3780 price zone, where it bottomed last week.

Support levels: 1.3810 1.3780 1.3730

Resistance levels: 1.3865 1.3905 1.3950

View Live Chart for the GBP/USD

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD embarks on a consolidative move around 1.1600

EUR/USD rapidly leaves behind Friday’s small downtick and trades with solid gains on Monday, consolidating its daily advance around the 1.1600 region as the NA session draws to a close. Meanwhile, the improved risk appetite following the US-Iran deal and the reopening of the Strait of Hormuz continues to weigh on the US Dollar, lending support to the broader risk-linked galaxy.

GBP/USD retreats from tops, back to 1.3420

GBP/USD keeps its advance past the 1.3400 yardstick at the beginning of the week. In the meantime, Cable continues to draw support from improved market sentiment following reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold stays firm, still below $4,400

Gold builds on its recent gains on Monday, climbing well north of the $4,300 mark per troy ounce. The yellow metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.

Ethereum Price Forecast: BitMine continues accumulation as ETH climbs above $1,800

Ethereum (ETH) treasury firm BitMine Immersion Technologies (BMNR) expanded its holdings last week, purchasing 76,881 ETH amid weakness in the crypto market. The acquisition lifted BitMine's stash of the top altcoin to 5.62 million ETH worth $10.35 billion at the time of writing. The company claims it now holds 4.66% of ETH's circulating supply, bringing it closer to its alchemy of 5% goal.

Indonesia may have stabilised the Rupiah, but the bigger fight is not over

Bank Indonesia’s emergency rate hike has bought the Rupiah some time, but the currency’s hesitant response suggests it has not yet restored confidence. Can higher interest rates solve the Rupiah’s problem, or do the country’s challenges run deeper?

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.