GBP/USD: Could the bulls break through the overhead supply around 1.3000? [Video]
As the rally kicked in early last week, the big question became whether the bulls could break through the overhead supply around 1.3000. The August lows between 1.2980/1.3050 have left significant resistance that now needs to be breached for the near term bounce to become a decisive bull move. Friday’s negative candle once more contained a key resistance forming around 1.3000. However, with the market ticking back higher once more today, it means that the next move on Cable could be crucial for the medium term outlook. After all the tests of the resistance, a move back into the 1.30s would be a positive signal for Cable. There was an initial slide back that rebounded from 1.2865 last week which is now initial support that takes on an increasingly important role in this phase of trading. A move back under 1.2865 would suggest the market rolling over again. Read More...
GBP/USD Outlook: Turns vulnerable to retest multi-week lows, around 1.2765-60 region
The GBP/USD pair extended last week's rejection slide from the key 1.3000 psychological mark and witnessed some aggressive selling during the early European session on Monday. The British pound was being weighed down by reports that the UK could be headed for another, a shorter national lockdown of two weeks to counter a resurgence in COVID-19 cases. The market worries overshadowed the EU Commission President Ursula von der Leyen's supportive comments last Thursday, saying that a trade deal between the EU and the UK was still possible.
Meanwhile, concerns about the second wave of coronavirus infections took its toll on the global risk sentiment. The anti-risk flow was evident from a selloff across the equity markets, which drove some heaven flows towards the US dollar and further contributed to the heavily offered tone surrounding the GBP/USD pair. The USD bulls seemed rather unaffected by concerns that the lack of additional fiscal stimulus measures could hinder the current US economic recovery and the risk-off mood-led sharp fall in the US Treasury bond yields. Read More...
GBP/USD outlook: Cable extends lower after triple failure at 1.30 as UK government considers new lockdown
Cable keeps weak tone in early Monday, following triple failure at psychological 1.30 barrier last week.
Friday's action closed in red and within thick daily cloud, raising fears that probe above cloud was short-lived and reversal could be likely near-term scenario.
BOE's talks about negative rates weighs on pound, with the latest signals that the government considers the second national lockdown, as new Covid-19 cases rise sharply and the UK already has the biggest death toll in Europe.
The Britain is in the critical point in the pandemic and looking how to manage the situation ahead of very challenging winter period, as the economy has been already damaged, with new restrictions to further slowdown economic recovery process. Read More...
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