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  • GBP/USD slips below the 1.3800 level today, making fresh daily lows around 1.3730.
  • Yesterday’s positive CBI report helped the pound rise, but the gains could not sustain as the USD gained back its control.
  • US durable goods data due on the day will provide further fresh impetus to the market.

The GBP/USD price lost strength at the start of Wednesday’s European session, and the technical outlook suggests that downside pressures could intensify in the coming weeks.

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The GBP/USD rose after CBI’s positive retail sales report on Tuesday. However, due to the broad appreciation of the dollar, the pair reversed direction that afternoon. In the meantime, Brexit headlines were not particularly helpful to the pound.

According to EU Internal Market Commissioner Thierry Breton, Brexit has resulted in an “economic disaster” for the UK. Breton also said that Britain had demonstrated “a lot of bad faith.”.

According to David Frost, the minister responsible for implementing the Brexit deal, the UK is unlikely to impose strict import controls on EU products. “I’d be surprised if we did the same as the EU when we introduced these controls in January and July,” Frost said.

On the other hand, Fed’s schedule for tapering and rate hikes continues to keep the US dollar underpinned. Moreover, deteriorated risk sentiment also provides room for Greenback.

The US durable goods orders will be examined later in the day for fresh impetus. Currently, the US dollar index is holding below 94.00, and a break above that level could bring further dollar buying and pressure on the GBP/USD pair.

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GBP/USD price technical analysis: Bears to pounce 1.3700

GBP/USD 4-hour price chart

With GBP/USD facing strong downward pressure to break the bullish channel’s support line and hit key support at 1.3718, caution should be used in the upcoming trade as the price must stay above this level for the positive scenario to persist shortly.

It should be noted that the breakout of 1.3720 will put additional negative pressure on the price, which is aiming for 1.3665. As a result, today’s range is expected to be between the 1.3780 support and the 1.3860 resistance.

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