- GBP/USD under pressure amid USD strength, Brexit concerns.
- UK political woes and covid concerns also weigh on the cable.
- Data-light calendar keeps DXY price action in focus.
The selling pressure around GBP/USD remains unabated, as the bears seek a test of the 1.3800 level amid resurfacing Brexit concerns and persistent US dollar’s strength.
The US economy seems to be closing in on the Fed’s ‘substantial progress’ benchmark, calling for monetary policy normalization sooner than previously thought. Adding to the hawkish bets, Fed officials Rosengren and Bostic also back early taper.
On the other side of the Atlantic, Brexit concerns have returned to the table amid the migrant crisis. The former Brexit Party leader Nigel Farage slammed France and the EU for failing to “lift a finger” to prevent the dangerous cross-channel migrant crisis.
Meanwhile, the UK political worries over PM Boris Johnson looking to demote Finance Minister Rishi Sunak also adds to the weight on the pound.
Looking forward, the US dollar price action and Brexit updates will continue to influence the pair amid a data-light calendar. Traders also await the US Senate vote on the infrastructure bill. The focus, however, this week remains on the UK Preliminary Q2 GDP and US CPI data.
GBP/USD technical levels to watch
|Today last price||1.3838|
|Today Daily Change||-0.0007|
|Today Daily Change %||-0.05|
|Today daily open||1.3847|
|Previous Daily High||1.3894|
|Previous Daily Low||1.3841|
|Previous Weekly High||1.3958|
|Previous Weekly Low||1.3861|
|Previous Monthly High||1.3984|
|Previous Monthly Low||1.3572|
|Daily Fibonacci 38.2%||1.3861|
|Daily Fibonacci 61.8%||1.3874|
|Daily Pivot Point S1||1.3827|
|Daily Pivot Point S2||1.3807|
|Daily Pivot Point S3||1.3773|
|Daily Pivot Point R1||1.3881|
|Daily Pivot Point R2||1.3914|
|Daily Pivot Point R3||1.3934|
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