GBP/USD struggles to cheer UK’s plan to cut VAT below 1.2200, US ISM PMI eyed
GBP/USD takes offers to refresh the intraday low around 1.2165, paring the biggest daily gains in a fortnight during Friday’s initial Asian session. In doing so, the Cable pair fails to cheer the news suggesting the UK government’s plan to ease the Value Added Tax (VAT) to counter the risk emanating from the price rise.
Prime Minister Boris Johnson's chief of staff Steve Barclay suggested reducing the 20% headline rate of the tax, The Times said, adding a temporary cut would reduce the tax bill for millions, per Reuters. The news fails to impress the GBP/USD buyers as the actual outcome is yet to witness and the official announcement is pending as well.
GBP/USD Price Analysis: Extends pullback from weekly resistance line towards 1.2100
GBP/USD reverses the previous day’s corrective pullback from a two-week low, refreshing intraday bottom around 1.2150 during Friday’s Asian session.
In doing so, the Cable pair extends the previous day’s pullback from a one-week-long resistance line, at 1.2180 by the press time.
The bearish bias also gains momentum due to the RSI (14) pullback from the oversold territory.
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