GBP/USD 1.3754 is the current price.
The dollar’s surge continues into the next session, and all eyes are on the NFP report.
Governor Bailey of the Bank of England counters Haldane’s remarks, causing the pound sterling to fall.
GBP/USD is unable to rebound and is fragile near 1.3670, a critical support region.
The pound fell across the board on Thursday after outperforming on Wednesday. The combination of a weak pound and a strong dollar pushed the GBP/USD rate to new monthly lows near 1.3750. Even as US yields remain stable and risk appetite is high, the dollar continues to shine. The US employment report on Friday will be a litmus test for the dollar’s current rally.
The pound climbed on Wednesday after comments from Bank of England Governor Haldane, but then fell sharply on Thursday as BoE Governor Bailey expressed a cautious view. He emphasized that the central bank should not overreact to a brief increase in inflation, and that the activity would likely fade in the months ahead. At the Monetary Policy Committee, the dovish Bailey appears to be more popular than the hawkish Haldane, who is stepping down. In terms of data, the final UK PMI was reduced from 64.2 to 63.9.
Technical forecast for the GBP/USD pair in the short term
GBP/USD is moving in a bearish channel on the 4-hour chart, with the lower limit suggesting a rebound or acceleration toward the next support at 1.3730. The RSI is still hovering around 30. If a short-term downtrend line at 1.3830 is broken, the existing position will be changed to neutral, favoring a consolidation or a minor recovery of the pound. The 20-week moving average is starting to shift south, indicating that the current bearish bias may hold for the foreseeable future.
1.3730 1.3675 1.3730 1.3730 1.3730 1.3730 1.3730 1.3730 1.3730 1.3730 1.
1.3785 1.3820 1.3855 1.3785 1.3820 1.3855 1.3785 1.3820 1.3855 1.3785 1.
Pixabay was used to create this image.
One of our external writers wrote the previous article.
It has not been modified and does not represent Benzinga’s perspective.
(c) Benzinga.com, 2021. Benzinga does not offer financial advice. All intellectual property rights are reserved./n
