Policymakers are likely to address tapering at their forthcoming meetings, according to BOE’s Saunders.
In just 24 hours, nearly 48,500 new coronavirus infections were reported in the United Kingdom.
The GBP/USD currency pair is technically bearish and might drop to new monthly lows.
During London trading hours, the GBP/USD pair reached a high of 1.3898, as comments from Bank of England policymaker Michael Saunders boosted the pound. He stated that they would debate whether to reduce the present asset acquisition program and/or take additional policy action next year in the coming months. He went on to say that if the “bank rate does rise in the next year or so, any increase will most likely be rather small.” Following that, the pair reversed course as the dollar gained momentum on the back of a gloomy market attitude. In Europe, stocks continued to fall, accelerating their declines ahead of the London close. Wall Street took a hit as well, but concluded the day with a mixed bag.
Meanwhile, over 48,500 new coronavirus infections were reported in the UK in the last 24 hours, despite only four people being brought to ICU. Approximately 69 percent of the UK population has gotten at least one coronavirus vaccine dosage, with around 53 percent receiving two. On Friday, the UK macroeconomic calendar will be blank.
Technical forecast for the GBP/USD pair in the short term
In the short term, the GBP/USD pair is trading at the 1.3800 level, indicating a bearish trend. The pair momentarily surged above its 20 and 100 SMAs on the 4-hour chart, both converging at 1.3845. Within negative levels, the Momentum indicator went somewhat higher, but the RSI indicator continued its slide and is now hovering around weekly lows, implying a harsher decline ahead, based on a clear break through the 1.3790 level.
1.3790 1.3740 1.3685 1.3790 1.3740 1.3685 1.3790 1.3790 1.3790 1.3790 1.
1.3945 1.3990 1.4035 1.3945 1.3990 1.4035 1.3945 1.3990 1.4035 1.3945 1.3990 1.40 Pixabay (C) 2021 Benzinga.com thanks you for your Like o contributions. Benzinga does not offer financial advice. All intellectual property rights are reserved./n
