The GBP / USD pair is trading in the red zone today.
The previous days, the US dollar provided strong support to the currency pair. The dollar index declined on expectations of an increase in stimulus measures in the US. Today the dollar is trading steadily and is trying to restore previously lost positions against most major currencies. Against this background, the GBP / USD pair came under pressure.
The pound is virtually devoid of support factors and cannot oppose even a slight strengthening of the dollar index. The economic outlook for the UK after Brexit and in a challenging epidemiological environment remains highly uncertain. Downside risks prevail. Against this background, the Bank of England may agree to further easing of monetary policy and lower interest rates, which, as a rule, puts pressure on the national currency.
In the economic calendar of Great Britain today it is worth paying attention to the publication of data on PMI of the construction sector for December. In the US, the focus will be on the labor market and non-manufacturing PMI data from ISM.
On the chart, we mark an unsuccessful attempt by buyers to break through to 1.3700 for the second time. The price turned down and now sellers are increasing pressure to the level of 1.3555. We are waiting for a breakdown of this level and a decline in quotations to 1.3480.
The main scenario is a breakdown of the support at 1.3555 and a decline to 1.3480.
An alternative option is a breakdown of resistance at 1.3625 and an increase to 1.3700.
The current fundamental outlook is moderately negative. We consider shorts on a pullback to 1.3625.
Only from April 12, 2021, to May 14, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
FortFS wishes all traders a Happy Chinese New Year! Only from February 8 to March 12, 2021, we reduce spreads for the 4 most popular trading pairs. New values*: EURUSDf: 0.8 GBPUSDf: 0.9 USDJPYf: 1.0 XAUUSDf: 3.5 *These values are valid only for FLEX accounts Hurry up to take advantage of the offer! Learn more about spreads: https://www.fortfs.com/clients/specifications