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GBP/USD outlook: Bears continue to face headwinds from strong supports at 1.3682/70
Cable stands at the back foot in early Monday’s trading following bearish close last week, but bears continue to face strong headwinds from strong supports at 1.3682/70 (100DMA / Mar 25 low).
Long lower shadows on Friday’s and Monday’s candles point to strong demand at this zone that may keep bears on hold for some time, as daily techs are mixed (daily MA’s 10/20/30/55) are in bearish configuration but stochastic is reversing in oversold territory and momentum is heading north towards the centreline. Read more…
GBP/USD Forecast: Reopening rally? Bulls still have three hurdles to overcome
A day of freezing temperatures may not be the best day to return to the high street – and perhaps not the best timing for a reopening rally for sterling. Nevertheless, GBP/USD is moving higher, bouncing off the stubborn 1.3670 level as Brits return to shops, gyms, and perhaps most importantly – pubs. Can the recovery continue? There are still three dark clouds looming over cable, that may inhibit any upside.
1) Brexit issues: While the EU and the UK are reportedly nearing a settlement related to commerce in Northern Ireland, tensions remain elevated in the province. Colder weather may have prompted a pause in violence, but frustrations around the Brexit accord may reignite riots on the streets of Belfast. Moreover, British exporters continue suffering from non-tariff barriers. Read more…
GBP/USD Outlook: Now seems vulnerable to slide further below 1.3600 mark
The GBP/USD pair dropped to over two-month lows on Friday and was pressured by a combination of factors. A possible link between the AstraZeneca coronavirus vaccine and a rare blood clotting disorder forced the UK’s medical regulator to issue a temporary ban on the jab for the below 30 age group. The development could delay the UK government’s plan to reopen the economy, which, in turn, acted as a headwind for the British pound. Another factor that weighed on the sterling was the latest unrest in Northern Ireland. Unionist politicians strongly object to how the Brexit deal’s Northern Ireland protocol treats their region differently from the rest of the UK. Read more…
