The GBP/USD exchange rate is now trading below 1.39. Bears dispute claims of irreversible reopening, according to Yohay Elam, an analyst at FXStreet, while US data is set to add pressure.” Sajid Javid, the UK Health Secretary, wants to keep the July 19 reopening date and insists on a return to normalcy. By the 19th of July, the United Kingdom will have vaccinated millions more people. Will this persuade investors to buy the pound? Not so fast, because further research is needed to determine whether this strain, which was first discovered in India, is able to withstand immunizations. Uncertainty might keep the pound under pressure.”
“The dollar is benefiting from cautious optimism about the US recovery, while inflation fears have subsided. The Conference Board’s Consumer Confidence numbers for June are expected to show a rise in consumer mood, perhaps giving the dollar a boost.”
“On the four-hour chart, the pound/dollar has been unable to reclaim the 50 Simple Moving Average and is suffering from bearish momentum. Furthermore, the Relative Strength Index is above 30, indicating that the market is not yet oversold, allowing for further declines.”
“The daily low of 1.3860 provides some support, followed by 1.3825, which capped cable when it was down in mid-June. The daily high of 1.3885 acts as a weak resistance level. 1.3940 is next, which was a high peak earlier in the week.”
Continue reading
