GBP/USD Searches for Assist After Fall

GBP worth, information and evaluation:

• A pointy rise within the US Greenback has hit GBP/USD exhausting, and extra losses now appear possible.
• After a break beneath the decrease trendline of a downward-sloping channel in place on the charts since late July, the important thing query for merchants is the place assist now lies.

GBP/USD heading decrease

GBP/USD has made a clear break beneath assist from a trendline becoming a member of the decrease lows of a downward-sloping channel in place on the charts since July 30. Now – maybe after a small bounce – additional losses look possible.

GBP/USD Value Chart, One Hour Timeframe (July 29 – August 19, 2021)

Supply: IG (You possibly can click on on it for a bigger picture)

Word from the hourly chart above that the relative power index (RSI) is simply simply on the 30 stage that implies the market has been oversold, so final month’s lows at 1.3591 on July 21 and 1.3572 the day past seem like cheap targets for the bears. On the upside the trendline talked about earlier, at the moment at 1.3737, will now present resistance.

Word too that the US Greenback remains to be benefiting from the unfold of the Delta variant of Covid-19, China’s company crackdown and the turmoil in Afghanistan. As well as, the minutes of the July assembly of the Federal Open Market Committee, launched Wednesday, pointed to settlement to sluggish its tempo of bond shopping for later this 12 months. Extra element is anticipated on the August 26-28 assembly of the Jackson Gap financial coverage symposium.

Elsewhere, with little on the UK financial calendar this session, the following information to look out for are Friday’s GfK measure of UK shopper confidence adopted by July public sector borrowing and retail gross sales.

— Written by Martin Essex, Analyst

Be happy to contact me on Twitter @MartinSEssex