GBP/USD Outlook: Bears trying to seize control amid Brexit/Covid woes, US CPI in focus
The GBP/USD pair struggled to capitalize on its intraday positive move and witnessed a dramatic turnaround on Wednesday in the wake of fresh Brexit jitters. The pair gained some traction after the Bank of England Chief Economist, Andy Haldane warned about rising inflationary pressures and added that the central bank might need to turn off the tap of its huge monetary stimulus. Bulls, however, struggle to capitalize on the move and failed ahead of the 1.4200 mark amid concerns about souring UK-EU relations. Read more...
GBP/USD Forecast: Brexit, virus strain sterling, critical support breached, US data eyed
The highest number of COVID-19 cases since February – the Delta virus variant is spreading fast, making the UK's last reopening stage less and less likely. While Britain is a world leader in vaccination, this strain first identified in India is finding its way to those not fully immunized. The highly anticipated "Freedom Day" will likely be postponed from June 21 to early July.
Economic damage from the delayed return to normal is joined by threats of quota tariffs from the EU. Brussels and London remain at loggerheads over the implementation of the Northern Irish protocol and tensions are mounting. Maroš Šefčovič, the EU´s Brexit point-person, said that his patience is running thin. Read more...
Technical analysis: Will the GBP/USD retreat continue?
The GBPUSD technical analysis of the price chart on a 1-hour timeframe shows GBPUSD: H1 is rebounding to test the 200-period moving average MA(200) which is declining. We believe the bullish momentum will continue after the price breaches above the upper bound of the Donchian channel at 1.4154. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 1.4072. After placing the order, the stop loss is to be moved to the next fractal low, following Parabolic indicator signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. Read more...
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.