The GBP / USD pair continues to move downward and today dropped below 1.39. The US dollar continues to exert pressure on the price.
The American currency is strengthening against all major competitors today. Investors are buying dollars amid the Fed's restrained reaction to the recent rise in US government bond yields. Obviously, the Fed will react more restrainedly to the growth in Treasury yields than other global central banks.
Additional pressure on the British pound is exerted by the situation on the stock exchanges, where there is a reduced interest of investors in risky assets.
There is no important news in the economic calendar of Great Britain and the USA today. Against this background, the dominant influence of the dollar on the dynamics of the movement of the GBP / USD pair will continue.
The currency pair dropped below the level of 1.3910 today. This is a signal to continue the downward movement with the target at 1.3840. In the area of this level, one can expect the formation of signals for an upward reversal.
The main scenario is a decline to 1.3840 and an upward correction.
An alternative scenario is a breakdown of the support at 1.3840 and a decline to 1.3780.
The current fundamental background is moderately negative. We consider shorts from the level of 1.4000.
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