GBP/USD Forecast: Sterling set to suffer even if the dollar takes a breather
Has sterling's bounce already ended? The chart is showing that GBP/USD has set to lower highs, exposing the currency pair's weakness – and for good reasons.
China reported weaker-than-expected consumption and production figures for July, and Bloomberg labels China's economy as "losing steam very fast." The world's second-largest economy is already grappling with an increase in COVID-19 cases – which have prompted authorities to close a busy port – and any slowdown weighs on markets. The risk-off mood benefits the dollar. Read more...
GBP/USD bounces off lows, flat-lined below 1.3875-80 supply zone
The GBP/USD pair reversed an early European session dip to the 1.3840-35 region and quickly recovered around 25-30 pips in the last hour. The pair was last seen trading in the neutral territory, around the 1.3860-65 region, just below daily swing highs.
The pair struggled to capitalize on Friday's goodish rebound from sub-1.3800 levels, or two-and-half-week lows and the upside, so far, remain capped near the 1.3875-80 supply zone. Worries about the potential economic fallout from the Delta variant of the coronavirus continued weighing on investors' sentiment. This, in turn, extended some support to the safe-haven US dollar and exerted pressure on the GBP/USD pair. Read more...
GBP/USD: The pound is poorly positioned to exploit a dollar ease
GBP/USD has been drifting lower as the safe-haven dollar finds reasons to rise. According to FXStreet’s Analyst Yohay Elam, sterling is set to suffer even if the dollar takes a breather.
“The flip side to downbeat economic news is that the Federal Reserve could delay tapering of its bond-buying scheme, thus printing more dollars for longer and devaluing the currency. Signs of a slowdown in US inflation also support looser monetary policy.” Read more...
|Today last price||1.3865|
|Today Daily Change||-0.0003|
|Today Daily Change %||-0.02|
|Today daily open||1.3868|
|Previous Daily High||1.3875|
|Previous Daily Low||1.3791|
|Previous Weekly High||1.3894|
|Previous Weekly Low||1.3791|
|Previous Monthly High||1.3984|
|Previous Monthly Low||1.3572|
|Daily Fibonacci 38.2%||1.3843|
|Daily Fibonacci 61.8%||1.3823|
|Daily Pivot Point S1||1.3814|
|Daily Pivot Point S2||1.376|
|Daily Pivot Point S3||1.373|
|Daily Pivot Point R1||1.3898|
|Daily Pivot Point R2||1.3929|
|Daily Pivot Point R3||1.3983|
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