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...

GBPUSD

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...

GBP/USD

Overview
Today last price 1.3865
Today Daily Change -0.0003
Today Daily Change % -0.02
Today daily open 1.3868
 
Trends
Daily SMA20 1.3835
Daily SMA50 1.3889
Daily SMA100 1.3927
Daily SMA200 1.3778
 
Levels
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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