Daily technical and trading outlook – GBP/USD
GBP/USD - 1.3812.. The pound traded narrowly in Asia Thur b4 rebounding fm 1.3856 to 1.3878 in Europe, however, price fell steadily due to active cross selling in sterling n later tumbled to a fresh 2-week trough of 1.3794 in 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...
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GBP/USD Forecast: Holding by a thread, bearish
The GBP/USD pair consolidates at the lower end of its weekly range, trading around the 1.3800 level. Major pairs had been lifeless as volatility plummeted following the release of US July inflation, which spur some temporal and limited dollar’s weakness. However, the American currency has recovered most of the ground shed then and trades near weekly highs across the FX board. The pound is its weakest rival, while safe-haven JPY and Gold are the strongest. Read more...
GBP/USD: Range bound around 1.3800 amid softer USD, Brexit jitters
GBP/USD is alternating between gains and losses around the 1.3800 level, looking vulnerable amid looming Brexit concerns. Although, the GBP bulls continue to fight for control, as the US dollar remains on the defensive amid mixed clues on the Fed’s next policy move.
On the latest update, post-Brexit trade frictions have "significantly altered" freight traffic between Ireland and Britain and sparked a steep rise in volumes to and from Ireland and other European Union members, Reuters reports, citing an Irish government agency report. Read more...
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