The cable got weaker and fell to fresh lows, closing at 1.3571, the lowest it has seen in the last 5 months. Higher numbers of COVID infections, is the leading reason for this downfall.The GBPUSD continues to maintain its bearish stance and is edging lower and lower as the days go by. While an alarming 46,500 new cases and close to 100 deaths per day remain the primary reason for this downslide, experts say that some other factors are equally responsible for the witnessed decline. Some reasons are the inability of the EU and UK to come to a consensus regarding the Northern Ireland protocol and persistent Brexit jitters.

Investors are looking forward to the June Public Sector Net Borrowing that is due on Wednesday. However, experts suspect that the pair is poised for a further downward slide considering the fact that the bearish MACD is backing the monthly support line.

Technically speaking, the cable is developing way below all of its moving averages. Even the bounce of the momentum indicator was not sufficient enough to help the pair recover.

As can be understood from the chart above, if the pair does not improve its position, then it may fall down to 1.35125. 

Share.

About Author

Mithun Girishan is the founder of MMM (Mithun’s Money Market), a consulting firm providing quality training programs in capital markets. He is an investor, trader, coach and a continuous learner. In addition, Mithun provides consultation and mentorship to many retail investors and company directors across the globe for investments, trading and hedging their wealth in stocks and futures. His passion lies in exploring new avenues in financial markets as well as learning theoretical and practical economics and its application in daily lives. This has exposed him to a wide range of markets spanning from equity, commodity, forex, futures to options.

Comments are closed.