GBP/USD price, news, and analysis: Following the pair’s slide from 1.40 last Wednesday, the pair appears to be technically weak, with 1.3786 being the near-term target. Despite revelation that the UK economy shrank by 6.1 percent year over year in the first quarter of 2021 and a possible truce in the so-called sausage wars between the UK and the EU, this is the case.

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The outlook for the GBP/USD currency pair remains gloomy.

From a technical standpoint, GBP/USD appears to be on track to prolong its recent drop from its high of 1.40 on June 23. The immediate downward objective, as shown on the two-hour chart below, is the 1.3786 low set on June 21, but if that is broken, the bears will most likely go after the 1.3670 low set on April 9. Price Chart for GBP/USD with a Two-Hour Timeframe (May 20 – June 30, 2021) IG is the source. (You can enlarge it by clicking on it.) In the news, statistics released this session revealed that UK GDP decreased by 6.1 percent year over year in the first quarter of this year, but the data had no bearing because it was primarily for historical purposes. Calendar from DailyFX Also in the headlines, a deal to resolve the sausage wars, a post-Brexit trade dispute between London and Brussels over the flow of chilled meats from the United Kingdom to Northern Ireland, is said to be close ahead of Thursday’s deadline. However, because this has been properly signaled, the GBP/USD exchange rate will be unchanged. You may get our unique report on how to trade following a news release by clicking here. Martin Essex, Analyst, penned this article. Please feel free to contact me at @MartinSEssex on Twitter.

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