Trading | 1 month ago
As the US dollar is losing its strength against the top currencies in the world, Pound is trying to gain some grounds. Last Week, GBP/USD broke below the important level of 1.3700 price level on the Fed’s rate hike projection.
According to the economic data released by the Commerce Department of United Kingdom, July Retail Sales were down by 2.5% month on month basis. The consumer confidence survey also failed to encourage the investors. As a result of this, GBP/USD dropped to one-month lows on Friday. The currency pair has fallen 1.8% in the last week.
On Monday, GBP/USD is Showing some signs of recovery as it bounced from the support level near 1.36200 and is up by 0.25% against the US dollar. However, on the daily chart, the pair is still trading below the 21-period Exponential moving average. Financial analysts expect the Pound to break below the July lows in the next few days if U.S. dollar does not lose its momentum.
The near-term technical outlook for GBP/USD is bearish and indicates further weakness. Therefore, one must look for selling opportunities in GBP/USD at the pullback. Watch out for the relative strength index on hourly charts for the pullback confirmation.
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