GBP/USD Hits New Five Month Low, Maintains Bearish Stance

GBP/USD Current Price: 1.3627

  • Brexit jitters and pandemic developments are undermining demand for the pound.

  • The UK will publish Public Sector Net Borrowing on Wednesday June.

  • GBP/USD hit a new five-month low, maintains bearish stance.

The GBP/USD pair fell for the fourth straight day to reach 1.3571, a level last seen in February. The UK macroeconomic calendar remained empty, but the pound has had enough of the ongoing Brexit jitters and the latest developments around the corona virus. The EU and the UK appear unable to reach an agreement on Northern Ireland’s protocol, and tensions arose after Britain asked the Union for flexibility on the matter.

With regard to COVID-19, the UK reported around 46,500 new cases and 96 deaths in the past 24 hours, the highest death toll since March. Still, it’s worth noting that more than 60% of people admitted to hospitals are not vaccinated. The UK will publish Public Sector Net Borrowing on Wednesday June.

GBP/USD Short Term Technical Outlook

The GBP/USD pair is oversold but still bearish. The 4-hour chart shows the pair moving well below all of its moving averages, with the price of 20 SMA well below the longer one. The Momentum indicator has bounced off the daily lows but remains well into the negative level as the RSI indicator consolidates around 28, leaving risk on the downside.

Support Levels: 1.3570 1.3525 1.3480

Resistance Levels: 1.3660 1.3705 1.3760

Image by Paweł Szymczuk from Pixabay

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