GBP/USD retreats further toward 1.3600 as pound loses momentum
The GBP/USD pair retreated further from the 1.3700 area and printed a fresh daily low during the American session at 1.3620. Cable is trimming some of Tuesday’s gains after being unable to make a run above 1.3700 and amid a US dollar recovery.
The greenback recovered strength and the DXY rose back to the area of the daily high near 90.30. The gains were modest as Wall Street trades mixed and despite the decline in US yields. The 10-year yield fell to 1.09%, the lowest since January 8.
Will GBP/USD ascend towards 1.3770?
The GBP/USD is stuck in an ascending channel making a two and half year high of 1.3699. The weakness in dollar was supporting the uptrend in pound however it got further momentum after Bank of England Governor Andrew Bailey appeared to waver on negative rates. Bailey has expressed concerns over the UK was facing its darkest hour amid surging covid cases and tighter lockdown restrictions.
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