GBP/USD At Risk Of Extending Its Decline Once Below 1.3670
The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. GBP/USD Current price: 1.3693
Irish Prime Minister Micheál Martin met French President Emmanuel Macron.
Hints on US Federal Reserve tapering hurt demand for high-yielding assets.
GBP/USD at risk of extending its decline once blow 1.3670.
The British Pound weakened against its American rival, with GBP/USD trading below the 1.3700 level ahead of the Asian opening. The dollar gathered pace during the US afternoon, as stocks turned sharply lower following comments from different US Federal Reserve officers hinting at soon-to-come tapering.
The UK did not release macroeconomic figures, but there was news on the Brexit front. Irish Prime Minister Micheál Martin said that the UK and the EU could “sensibly solve” issues over Northern Ireland's post-Brexit trading arrangements with the right political will, following a meeting with French President Emmanuel Macron after the latter visited the country.
GBP/USD short-term technical outlook
The GBP/USD pair has traded as low as 1.3695, offering a bearish near-term perspective. The 4-hour chart shows that it fell below its 20 SMA, which currently converges with a Fibonacci resistance at around 1.3730. In the meantime, technical indicators have retreated to below their midlines, turning flat afterwards. Bears will have higher chances if the pair breaks below the 1.3670 price zone, the immediate support level.
Support levels: 1.3670 1.3620 1.3165
Resistance levels: 1.3730 1.3780 1.3825
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