On the back of the risk-off sentiment, the Cable has fallen below 1.33. The next level of support is located at the 1.3250 level. As long as the pair maintains its current level, analysts at Société Générale believe it will perform a short-term rally.
The Pound/Dollar is near the support level of 1.3250, which represents the weekly Ichimoku cloud. Defending against this may result in a short-term improvement. The price of 1.3570/1.3600 will be a short-term stumbling block.
Overview Of The Technical Aspects
GBP/USD CHART Source: Tradingview.com
The Pound/Dollar is now trading around the falling trend line that has been in place since Nov 18 at around 1.3340. Further increases toward 1.3380 (stationary level) as well as 1.3400 (psychological level, 50-period SMA) are possible if buyers manage to convert the 20-period SMA into support on the 4-hour chart.
Supplementary increases toward 1.3400 (psychological threshold, 50-period SMA) are possible if bidders manage to convert the 20-period SMA into support.
In the meantime, the Relative Strength Index (RSI) is trending upwards, indicating that investors are encouraged.
On the negative, the psychological level of 1.3300 serves as a first support mark, in advance of the level of 1.3280 (daily low).
Overview Of The Fundamentals
Following a brief slide below 1.3300 previously in the day, the Pound/Dollar has managed to regain momentum in the early European session and has begun to climb higher toward the mid-1.3300s as a result of intense selling action on the Greenback.
When it comes to maintaining its strength, the British Pound may face difficulties as investors reevaluate the influence of a newly discovered coronavirus variation on the Bank of England’s (BoE) policy forecast.
Interest rate futures in the United Kingdom are presently pricing in a 55% likelihood of a 15-basis point Bank of England rate rise in December, down from a 75% chance on Thursday.
Flights from six African nations will be prohibited beginning at noon GMT on Friday, according to British Health Secretary Sajid Javid.
Following a press presentation scheduled for later in the day by the World Health Organization (WHO), investors are concerned that current vaccinations would be useless against the severely altered new version.
Meanwhile, the benchmark 10-year US Treasury bond yield is decreasing by about 7%, which is having a significant impact on the value of the US currency.
According to the CME Group’s FedWatch Tool, investors have already begun to express skepticism about a Federal Reserve rate rise by June 2022. In the remaining hours of the day, there will be no high-quality data releases, and bond markets will shut early in observance of the Thanksgiving holiday.
Before the weekend, the duo may continue their technical pullback, but the fundamental view does not yet indicate a sustained rebound in the short term.
The information provided on this website should not be interpreted as financial or investment guidance and may not embody the perspectives of Forex Tools Trader or its contributors. Forex Tools Trader does not hold responsibility for any financial setbacks experienced due to the use of information provided on this website by its writers or patrons. It's essential to thoroughly investigate and make informed decisions before entering any financial commitments, particularly concerning third-party reviews, presales, and similar ventures. The content you are viewing may be sponsored content, read our full disclaimer to learn more.