GBP/USD Sinks Lower Below $ 1.4000 - Kakiforex.com - Financial Market Media No. 1 in the World GBP/USD Sinks Lower Below $ 1.4000 GBP/USD Sinks Lower Below $ 1.4000
InstaForex

June 18, 2021

GBP/USD Sinks Lower Below $ 1.4000

 The decline on the GBP/USD chart was certainly expected by many based on clear fundamental and technical factors after the results of the FOMC meeting early Thursday morning.


The US dollar continued to strengthen its trading value to show its best weekly performance in 9 months to end its previous series of declines.




Meanwhile, the Pound Sterling continued to move weakly and is expected to continue for several more weeks following the extension of movement restrictions in the UK that affected Prime Minister Boris Johnson’s economic opening plan.


The positively published UK economic data also failed to support the appreciation of the Pound. Today’s European session will focus on UK retail sales data for May, which is expected to record a weak reading.


Examining the price movement on the GBP/USD chart, the price has plunged to the support level of 1.40000 after the FOMC meeting before slowing around that level.


The decline continued in the European and New York sessions yesterday until hitting the latest low of 1.39000.



The price movement below the Moving Average 50 (MA50) barrier level on the 1 -hour time frame on the GBP/USD chart is a signal for the price to continue making declines.


After hitting the 1.39000 level, the price returned to a slow and flat rise during the Asian session on Friday morning.


However, the decline is expected to continue to reach the latest target level at the support zone 1.38300-1.38000.


For a bullish situation, the 1.40000 level will be the resistance that the price will test before resuming the decline.


A rise beyond that level will make investors wary of reversal of the uptrend.