GBP/USD Hot Forecast

  • GBP/USD remained under some heavy selling pressure amid a broad-based USD strength.
  • The Fed's hawkish turn, the risk-off mood continued boosting the safe-haven greenback.
  • COVID-19/Brexit jitters weighed on the British pound and contributed to the selling bias.

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GBP/USD has been extending its decline, sliding under 1.39. UK retail sales disappointed with -1.4% in May and the rapid spread of the Delta variant in the UK is also weighing on sterling. The US dollar remain robust after the Fed's hawkish decision. The USD buying picked up pace during the early North American session and dragged the GBP/USD pair to fresh multi-week lows, around the 1.3845 region in the last hour.

The currency pair is suffering from downside momentum on the four-hour chart and trading well below the 50, 100 and 200 simple moving averages. While the Relative Strength Index is below 30, it has not fallen too deep. Any small upswing could send the RSI above 30, thus exiting oversold conditions and allowing for a fresh dip.

Support is at the new low of 1.3955, followed by 1.3830, a cushion from May. Further down, 1.38 and 1.3770 are eyed.

Resistance awaits at 1.3945, the daily high, and then by 13975 and 1.4010, the latter working as support last month.

The material has been provided by InstaForex Company - www.instaforex.com

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