- The pound continues to be under pressure in the market.
- GBP/USD falls for the fourth day in a row.
- The dollar with mixed results, without clear direction on Wednesday.
The GBP/USD is falling for the fourth day in a row, recently hitting a new two-year low at 1.1598, before embarking on a small bounce. The dollar lost some strength after the start of the American session while the pound remains under pressure.
The energy crisis, coupled with dismal growth prospects in the UK, continue to be negative factors for the British pound. Added to the above is the EUR/GBP rally, which extends on Wednesday to the fourth day in a row. The cross broke above 0.8600 and is trading at 0.8625, the highest level since early July.
The dollar For its part, it moves without a clear direction. It continues to be supported by expectations of more strong increases by the Federal Reserve. Wednesday’s data did not help the dollar. The ADP employment report showed an increase in private sector jobs of 132,000, below the 288,000 expected. On Friday it will be the turn of the official report with non-farm payrolls.
Technically the GBP/USD continues with the clearly bearish trend and is testing the 1.1600 zone. The break below would enable further downside. The next strong support can be seen at 1.1500 and then 1.1470, before the 2020 low of 1.1405/10. To the upside, at 1.1650 is the first resistance zone followed by 1.1695 and then 1.1750.
Technical levels
Source: Fx Street
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