- The pound is moving in no clear direction on Monday.
- GBP / USD remains sideways between 1.40 and 1.39.
The GBP / USD is trading in the den zone where it closed on Friday, in a day of lateral movements, without a clear direction at the moment. The price previously towards the 1.4000 area, but without managing to return above. More recently it fell to 1.3903, marking a new low for the day, but holding above last week’s lows.
Against the euro, the pound is rising modestly, having failed to hold on to more significant gains. In the preview of the opening of the American session, it does not show a clear direction. Some support for the currency comes from better risk sentiment in the market and continued positive outlook on vaccination in the UK.
Economic data for the manufacturing sector will be released in the US. Also throughout the day various functions of the Federal Reserve will speak. The focus of traders is expected to continue to be on events in the bond market and on Wall Street.
The futures of the main indices point to a positive open, while bond yields rise, but in the last hours they moved away from the highs, weakening the dollar. The 10-year rate operates at 1.42%.
From a technical point of view, GBP / USD remains negative after last Thursday’s crash. For now, the 1.3900 support is relevant in the short term.. A firm drop below would point to further losses, with the next support being at 1.3845 / 50. In the opposite direction, immediate resistance can be located around 1.4000. Above, the pound could extend the rebound. The next resistance is seen at 1.4090.
Technical levels
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