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GBPUSD – British Pound Remains Sell on Rallies Vs US Dollar

Key Points

  • The British Pound failed two times to break the 1.2820 resistance against the US Dollar and moved down.
  • There was a break below a crucial bullish trend line with support at 1.2745 on the hourly chart of GBPUSD.
  • Today in the UK, there was a speech given by Mark Carney, at The Mansion House, London (20 June 2017).
  • The impact was mostly negative on the British Pound, and GBPUSD declined towards 1.2675.

GBPUSD Technical Analysis

The British Pound traded positively this past week, but recently it failed to break the 1.2820 resistance against the US Dollar. The GBPUSD pair made two attempts to break 1.2820, but failed and moved down sharply below the 1.2750 support.

GBPUSD Technical Analysis

It also broke the 21 hourly simple moving average and the 50% Fib retracement level of the last wave from the 1.2640 low to 1.2820 high. It declined and traded as low as 1.2676. It is currently recovering, but faces the 23.6% Fib retracement level of the last decline from the 1.2820 high to 1.2676 low at 1.2710 as resistance.

Furthermore, the 38.2% Fib retracement level of the last decline from the 1.2820 high to 1.2676 low at 1.2730 might also act as a hurdle and prevent gains towards 1.2750 or 1.2780.

Mark Carney’s Speech

Recently in the UK, there was a speech given by Mark Carney, at The Mansion House, London (20 June 2017).

He mentioned that “From my perspective, given the mixed signals on consumer spending and business investment, and given the still subdued domestic inflationary pressures, in particular anaemic wage growth, now is not yet the time to begin that adjustment”.

Overall, the GBPUSD may correct a few pips from the current levels, but likely to face sellers near 1.2720-30 in the near term.

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