GBP/USD Forecast: Break below 200-DMA/61.8% Fibo. to pave the way for further weakness
The GBP/USD pair seesawed between tepid gains/minor losses on Friday and consolidated its recent slump to seven-week lows. The US dollar remained depressed on the back of the deadlocked over the new US fiscal stimulus measures. The US Senate on Thursday rejected a Republican bill that would have provided around $300 billion in new coronavirus aid. Democrats voted to block the legislation on the grounds that the package was too small to tackle the scale of the economic downturn led the coronavirus pandemic. This, in turn, was seen as a key factor lending some support to the major.
However, growing fears of a hard Brexit continued undermining the British pound and kept a lid on any meaningful positive move for the major. Given that investors remain preoccupied with the developments surrounding the Brexit saga, Friday better-than-expected UK manufacturing data failed to impress the GBP bulls or provide any meaningful impetus to the major. In fact, the UK Industrial Production increased by 5.2% MoM in July and Manufacturing Production rose 6.3% MoM. Read More…
GBP/USD Forecast: Parliament set to pummel the pound, ending the dead-cat bounce
The rebels are back – despite having a large majority in parliament, Prime Minister Boris Johnson’s victory in passing a controversial Brexit-related bill is unclear. The House of Commons will debate the Internal Markets bill, legislation which violated the Withdrawal Agreement – as ministers openly admit. The PM seems to have changed his mind on allowing for a customs border on the Irish Sea – a concession that was critical for striking an accord with the EU last year.
Brussels expressed anger at the move and laid down an ultimatum to London – rescind the bill by the end of September or face sanctions. Instead of proceeding to discuss future relations, Britain and the bloc are at loggerheads over the divorce deal signed nearly a year ago. Read More…
GBP/USD clings to recovery gains near session tops, around mid-1.2800s
The GBP/USD pair built on its steady intraday positive move and refreshed daily tops, around mid-1.2800s during the early European session.
The British pound witnessed some short-covering move on the first day of a new trading week ahead of a crucial vote on the UK government’s so-called Internal Market Bill. The legislation drew a lot of criticism and fueled market fears that the UK will crash out of the European Union at the end of the transition period. Read More…
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