GBP/USD: The uphill battle for the GBP is becoming stronger with increasing UK restrictions [Video]
The GBPUSD is sitting on some pretty heavy support on top of its 100 and 200 daily moving average. The uphill battle for the GBP is becoming stronger with increasing UK restrictions to slow down COVID-19. The USD is helping GBPUSD falls as it is also finding strength from a combination of general risk aversion and position trimming into quarter end.
With rising COVID-19 cases, job losses expected at the end of the furlough scheme, negative rates gently hinted at by the Bank of England, and potential Brexit calamity expect sellers on the GBPUSD pair. Read More...
GBP/USD new lows are smiling to seller
The GBP/USD is clearly bearish. At this point the price stands at the W H5 so we might see a rally which sellers might use for selling at a better price.
There are 2 POC zones where we could see new wave of selling. The first POC 1.2760-90 is additionally supported by the order block (red line). In the case of a deeper retracement up watch for 1.2820-60. Reversal patterns in the zone could also show sellers and we should see a further drop towards 1.2780, 1.2685 and 1.2650. Below 1.2650, 1.2579 is the target. Selling the rallies continues. Read More...
GBP/USD Analysis: Break below 200-DMA paves the way for further near-term weakness
The GBP/USD pair had some good two-way price moves on Tuesday and was influenced by a combination of diverging forces. Following an early slide to the 1.2700 neighbourhood, the pair caught some intraday traction and rallied over 150 pips after the BoE Governor Andrew Bailey downplayed expectations that the central bank could soon cut interest rates below zero. At an online talk hosted by the British Chambers of Commerce, Bailey said that the mention of negative rates doesn't imply anything about the possibility of using it. He also noted that the experience of negative rates elsewhere was mixed, and the effectiveness depends on the structure of the banking system and the timing of the move.
The British pound got an additional from positive Brexit-related headlines. EU source reportedly said that Brexit talks have been going a bit better than expected and that there is a 'window of opportunity'. The UK PM spokesman confirmed the EU Chief Brexit Negotiator Michel Barnier's visit tomorrow for informal talks. The spokesman further stressed that the UK will continue to work hard on securing a Brexit deal. Read More...
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