On Thursday, the GBP/USD pair fell to two-and-a-half-month lows, owing to a number of factors. The British pound was heavily sold after Bank of England Governor Andrew Bailey stated that the BoE should not overreact to momentarily high inflation in order to avoid jeopardizing the recovery by premature tightening of monetary policy. If signals of more persistent inflationary pressure emerge, Bailey said the Bank of England will respond using monetary policy instruments. Continue reading…
Boris Johnson’s Conservatives nearly missed out on winning Batley and Spen in a by-election, with voters purportedly citing government scandals for their lack of support. That is merely the most recent tiny reason weighing on the GBP/USD pair. Other concerns are more pressing, but cable may have some wiggle room on Friday.
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. Continue reading…
The 1.3820 level provided enough resistance to keep the GBP/USD from falling below the bottom trend line of the channel down pattern, which had been guiding the rate since June 23. The rate drifted sideways near the 1.3750 mark during Friday’s trading hours.
The pair should fall in theory, as it has no technical support below the 1.3677 level, which was the weekly S2 simple pivot point. Round exchange rate levels like 1.3740, 1.3720, and, most crucially, the 1.3700 mark could provide support. Continue reading…/n
