The GBP/USD exchange rate has been falling due to a combination of dollar strength and virus fears. According to FXStreet’s Analyst Yohay Elam, US Nonfarm Payrolls may prompt a temporary dollar fall, presenting a new selling opportunity.
“The main concern in the UK is that the reopening, which is now scheduled for July 19, could be postponed or watered down. The Delta variation is rapidly spreading, and the resulting increase in hospitalizations is causing concern. More time would allow the United Kingdom to vaccinate more individuals. Concerns about a potential winter storm are also weighing on economic forecasts.”
“The Federal Reserve and markets are now focused on June’s crucial Nonfarm Payrolls report. The economic calendar predicts a job gain of 690,000, up from 559,000 in May, and a decline in the unemployment rate to 5.6 percent “”Recent.”
“Overall, there is opportunity for disappointment in Nonfarm Payrolls, which could lead to a rise in the GBP/USD. Nonetheless, the fundamentals have not changed: the US economy continues to grow rapidly, and the Federal Reserve is preparing to withdraw some of its support.”
“The recent low of 1.3743 provides immediate support, followed by 1.3720, a swing low from April. The key level to keep an eye on is 1.3670, which was a double bottom in April and is also the lowest since February.”
“1.3785, a trough from mid-June, represents resistance, followed by 1.3835, which capped a rebound attempt earlier this week. GBP/USD is now trading between 1.3875 and 1.3940.”/n
