Sunday, August 5, 2018

GBP/USD - 06 August 2018


Fundamental Highlights

The Pound points lower as the market continues to digest the BoE's cautious outlook on the British economy. The BoE made it clear that further rate hikes will not be an easy path as there are still risks associated with Brexit. In addition to the negative sentiment surrounding the Sterling, greenback traders remain optimistic on the U.S currency although the NFP report came out mixed last week.

Technical Analysis

The Pound continues to break below support levels indicating strong bearish momentum. Most recently, the Pound broke below the 1.30033 support level paving the way for a drop towards 1.29591.

Support: 1.30033 1.29591
Resistance: 1.30502 1.31622

Chart (H4)