xysoom
Matrosen-Obergefreiter
Joined: 26 May 2020
Location: China
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| Posted: 01 July 2020 at 21:43 | IP Logged
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British Pound Price Outlook: GBP/USD Bounces
In an environment where many major currencies are
range-bound, the British Pound has put in a recent streak
of weakness.To get more news about
W
ikiFX, you can visit wikifx news official website.
¡¡¡¡Brexit remains as a driver but the notable item
from this week was talk of potentially negative interest
rates in the UK.
¡¡¡¡Next weeks economic calendar is rather light on
high-impact data releases, pointing to the possible
continuation of risk themes as a primary driver.
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¡¡¡¡GBP Bounces After Last Weeks Support Breaks
¡¡¡¡It has so far been a brighter outlay this week for
the British Pound as the currency has bounced against
both the US Dollar and the Japanese Yen. Last week was
marked by weakness in Sterling as sellers pushed each of
those pairs down to fresh monthly lows; but at least a
portion of that has been offset this week as both GBP/USD
and GBP/JPY have thus far put in net gains, even as talk
of negative interest rates from the BoE began to
circulate through the headlines.
¡¡¡¡This dynamic isnt necessarily discounting the
prospect of negative interest rates as much as it may be
driven by a related theme in risk markets. As discussed
on the topic of Gold and then US equities, an interview
from FOMC Chair Jerome Powell that was broadcast on
Sunday night has helped to add some heat to the current
risk rally, and this looks to have taken a toll on both
the US Dollar and Japanese Yen getting hit with another
bout of weakness; which has helped to buoy both GBP/USD
and GBP/JPY.
¡¡¡¡In Cable, the big question is whether sellers are
going to react to that next spot of lower-high
resistance, and there¡®s a few possible areas where that
may develop: From the below chart current support showed
up around the 38.2% retracement of the March major move;
and the 50% marker from that same study is very nearby,
just above the 1.2300 handle. That area helped to provide
a couple of spots of support in late-April and then again
in early-May. Above that, the 61.8% retracement lines up
very closely to the 1.2500 level, producing an element of
confluence that may constitute an ¡¯r2 zone of
resistance.
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Topic: British Pound Price Outlook: GBP/USD Boun
