- The pound loses more moment against the dollar and aims to consolidate at lower levels.
- The dollar is holding firm and building on last week’s gains.
He GBP / USD broke below 1.3480 and extended the slide to 1.3463, the lowest level since December 29.. The price remains under pressure below 1.3500 and from last week’s bottom at 1.3530. The main factor for the fall is the strength of the dollar.
The greenback continues the momentum of last week. The DXY is trading at weekly highs near 90.50. The rise in Treasury yields continues to support the dollar.
Stock markets on Monday are retreating and Wall Street futures are at a minimum for the day pointing to a negative opening with falls between 0.50% and 0.70%. The tone of caution among investors favors the dollar.
The libra It is not shown with great changes in a day without economic impact data. The focus of attention remains on US politics, the assessment of what was the employment data on Friday and the advance of coronavirus cases in the world.
From a technical point of viewAs long as it remains below 1.3530 the GBP / USD will maintain a bearish bias in the short term. The price, to add more weight to the bearish side, is back below the 20-day moving average (1.3510). In case of extending the fall, two strong supports appear at 1.3410 and then 1.3310 / 20, an uptrend line.
Gone is the close of 2020, with the pound testing 1.3700. Although the long-term trend is still bullish, recent movements favor a consolidation with a bearish bias. A return above 1.3530 would ease the pressure.
Technical levels
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