InstaForex

July 9, 2021

Risk -Bound, GBP/USD Remains 'Depressed'

 In contrast to the Euro which managed to show an increase yesterday, the Pound Sterling on the other hand continued to move weak towards the weekend trade.


The increased risk of Covid-19 Delta variant infection cases in the UK is seen to affect the full economic opening recovery plan which has been extended on 19 July.


The US dollar which was seen moving declining in the market gave room for some major currencies to re -trade higher, but the Pound failed to do so.




Seen on the chart of the GBP/USD currency pair, the price remains moving below the level of 1.38000 with the weekly lowest recorded yesterday around 1.37400.


The zone, which was also supportive of last week's trading, managed to raise the price again, but the rise was blocked at the Moving Average 50 (MA50) barrier level on the 1 -hour time frame which still signals a bearish trend.


Continuing on Friday morning's Asian session trading, the price still failed to break the MA50 barrier despite being tested several times.



The bulls are trying to re -break the 1.38000 level which will again give a positive bullish signal.


The higher rise is seen to lead up to the level of 1.39000 again in the SBR zone (support become resistance).


However, with the bearish pattern shown, the price is expected to continue lower towards the support zone at 1.37000.


The start of today’s European session will focus on UK GDP growth data which will also influence the Pound’s movement before this week’s trading ends.