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GBP/USD Reached A Fresh Five-Month Low, Maintains The Bearish Stance

·1 min read

GBP/USD Current price: 1.3627

  • Brexit jitters and pandemic developments undermine demand for the pound.

  • The UK will publish June Public Sector Net Borrowing on Wednesday.

  • GBP/USD reached a fresh five-month low, maintains the bearish stance.

The GBP/USD pair edged lower for a fourth consecutive day, bottoming at 1.3571, a level that was last seen in February. The UK macroeconomic calendar remained empty, but the pound has enough with persistent Brexit jitters and the latest coronavirus developments. The EU and the UK seem unable to find common ground regarding the Northern Ireland protocol, and tensions arose after Britain demanded flexibility on the issue to the Union.

Regarding COVID-19, the UK reported roughly 46,500 new cases y 96 deaths in the last 24 hours, the highest death toll since March. Nevertheless, it is worth noting that over 60% of people being admitted to hospitals are unvaccinated. The UK will publish June Public Sector Net Borrowing on Wednesday.

GBP/USD short-term technical outlook

The GBP/USD pair is oversold but still bearish. The 4-hour chart shows that the pair is developing far below all of its moving averages, with the 20 SMA heading firmly lower below the longer ones. The Momentum indicator bounced from daily lows but remain well into negative levels as the RSI indicator consolidates around 28, all of which maintains the risk skewed to the downside.

Support levels: 1.3570 1.3525 1.3480

Resistance levels: 1.3660 1.3705 1.3760

Image by Paweł Szymczuk from Pixabay

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