GBP/USD unattractive amid Brexit and coronavirus woes
GBP/USD: The calm before the storm below critical daily trendline resistance
GBP/USD is stuck in the mud on Monday trading for the entire day between a narrow range of between 1.3734 and 1.3775 and at the lowest ATR for 2021 so far at 0.00796.
Domestically, the UK has a very quiet week ahead, starting off with a bank holiday Monday, hence the calm in markets as London traders soak up their last rays of summer sunshine.
Meanwhile, cable has struggled to hold onto its top spot this month, capped below 50% of the August drop. Read more…
GBP/USD Forecast: Pound unattractive amid Brexit and coronavirus woes
The GBP/USD pair ended Monday unchanged in the 1.3760 price zone after spending the day within a tight 40 pips range. The pair was unable to attract speculative interest amid a local holiday and a scarce macroeconomic calendar. The pound remains unattractive amid concerns related to persistent tensions with the EU, the latest related to food shortages in the UK amid disruption in the supply chain. Another factor undermining demand for the British currency is the spread of the coronavirus Delta variant, which results in over 30K new cases per day. Read more…
GBP/USD outlook: Bulls lose traction on approach to the base of thick daily cloud
Bulls started to lose steam on Monday after last week’s nearly 1% advance, facing strong headwinds from the base of thick daily cloud (1.3760).
Although the price action is holding near the top of multi-day congestion, cable is lacking strength for eventual break higher.
Renewed concerns about the UK economic recovery on global threats from Delta variant spread and hopes that the Fed will start tapering in the near future, limit pound’s recovery, while traders focus US Aug payroll data for fresh signals. Read more…
