GBP / USD marks five-month lows below 1.3600

Get real time updates directly on you device, subscribe now.

  • The lira remains under pressure amid risk aversion.
  • GBP / USD is down for the fourth day in a row, heading for the lowest close since mid-January.

The GBP / USD is extending the slide and has just hit a fresh five-month low below 1.3600. The pound is still under strong downward pressure against the dollar and also affected by risk aversion.

The price fell to 1.3591, the new intraday low since February. It is trading around 1.3600, almost 200 pips below the level it started the week with.

The sharp decline brought GBP / USD below the 200-day moving average (closing basis) since July last year. The price seems to be looking for a new level of equilibrium, and as long as it is below 1.3660, strong pressure is expected to persist. The next possible support is at 1.3560 / 65.

While the dollar is in demand in a context of risk aversion, the pound is one of the most affected. On Tuesday, Wall Street futures point to a positive opening, but the rebound still looks vulnerable, given the continuity of a climate of caution.

In turn, the spread of infections due to the delta variant threatens the recovery of the economy. In the UK The cases continue to grow exponentially, but for now there have been no expressions against the release of the restrictions.

Technical levels

.
Source Link

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.