Key Speaking Factors:GBP/USD nearing key help as bearish stress mountsRetail gross sales drop in Might as hospitality reopensGBP/USD continues to
Key Speaking Factors:
- GBP/USD nearing key help as bearish stress mounts
- Retail gross sales drop in Might as hospitality reopens
GBP/USD continues to slide decrease, breaking beneath 1.39 for the primary time since Might 7th. The autumn has principally been attributable to a stronger US Greenback on the again of hawkish commentary from the Consumed Wednesday, however GBP fundamentals have additionally been slacking.
Final week we noticed weaker than anticipated manufacturing information coupled with the delay of as much as 4 weeks of the tip of Covid-19 restrictions introduced earlier this week. GBP/USD had already been buying and selling at a decent vary close to three-year highs so the pullback isn’t all that shocking, particularly introduced on from a rally within the US Greenback. However the pair had tried to rebound across the 1.3898 space through the Asian session when the most recent retail gross sales information publish this morning introduced additional promoting stress because it confirmed how gross sales within the UK have dropped within the month of Might, supposedly swapped for spending on eating places and pubs now that hospitality is open once more.
In the meantime, UK and EU relations worsen over the dispute Northern Eire border because the UK asks the EU for an extension of its grace interval for chilled meat exports, which might be placing a drag on the pound.
GBP/USD 4-hour chart
Technically, the pullback could begin to look overstretched at these ranges so I might be careful for some short-term help. 1.3824 – 1.3802 is the vary the place earlier retracements have been halted so we may even see purchaser help round this space if the promoting continues. Trying on the wider image, GBP/USD continues to indicate a robust uptrend, with bullish momentum intact so long as the pair holds above 1.3850, at which level the ascending trendline might be damaged for the primary time since April 2020.
GBP/USD Weekly Chart
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— Written by Daniela Sabin Hathorn, Market Analyst
Observe Daniela on Twitter @HathornSabin
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