- The British Pound continues to trade lower, with the recent pullback from 1.2700 increasing bearish pressure.
- Rising US yields and market expectations of a “more bullish for longer” Fed outlook are expected to support the Dollar.
- GBP/USD is about to test an important support zone at 1.2500.
The British pound continues to trade within a bearish channel from the early March lows and looks set to test an important support zone at 1.2500. Wednesday's long negative candle reflects an impulsive bearish move and gives sellers hope of exploring new year-to-date lows.
US Treasury yields[rallyandinvestorsreassesstheirexpectationsforFedcutsthisyearwhichisactingasatailwindfortheUSdollarUSPPIdataandaslightincreaseinjoblessclaimshaveprovidedsomereliefalthoughdollarreversalsremainlimitedfornow[repuntanylosinversoresreevalúansusexpectativasderecortesdelaFedesteañoloqueestáactuandocomovientodecolaparaelDólarestadounidenseLosdatosdelIPPdeEEUUyelligeroaumentodelassolicitudesdesubsidiodedesempleohansupuestounciertoalivioaunquelasreversionesdeldólarsiguensiendolimitadasporahora
The oscillators are pointing bearish and the bearish crossover between the 50-day and 100-day SMA adds weight to the pair. Industrial production data in the United Kingdom will be published on Friday.
The next supports are 1.2500 and 1.2450. To the upside, 1.2600 and 1.2710 could limit bullish attempts.
GBP/USD Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
