Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3986.. Although cable briefly rose abv Fri's 1.3909 top to 1.3911 in Asia y'day, price fell on broad-based selling of sterling on UK re-opening amid rising Covid cases, price hit 1.3839 b4 reboundings to 1.3905 (NY).
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month, 1.4241 peak in late Feb suggests a major low is made. Read more...
GBP/USD analysis: Fails at surging
On Tuesday, the GBP/USD made another attempt to pass the zone above the 1.3900 marks. In the meantime, the rate revealed on Monday that the zone near 1.3840 manages to provide support.
In the near term future, the pair could be pushed up by the support of the 55, 100, and 200-hour simple moving averages. A potential surge could once again test the resistance of the 1.3900 zones. A passing of the zone could result in the rate reaching the weekly R1 simple pivot point at 1.3963. Read more...
GBP/USD dives to 1.3800 mark, fresh session lows on hotter-than-expected US CPI
The GBP/USD pair dived to fresh daily lows in reaction to hotter-than-expected US consumer inflation figures, with bearish now eyeing sustained weakness below the 1.3800 mark.
Having struggled to find acceptance above the 1.3900 mark, the GBP/USD pair came under some renewed selling pressure on Tuesday and was weighed down by a combination of factors. The disappointing data released by the British Retail Consortium (BRC), along with COVID-19 and Brexit woes turned out to be key factors that acted as a headwind for the British pound. This, along with a goodish pickup in the US dollar demand, contributed to the pair's intraday decline. Read more...
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