GBP/USD looks south towards 1.3800 amid renewed Brexit woes, USD strength
The selling pressure around GBP/USD remains unabated, as the bears seek a test of the 1.3800 level amid resurfacing Brexit concerns and persistent US dollar’s strength. The greenback continues to draw bids alongside the Treasury yields amid expectations of an earlier tapering by the Fed, in light of Friday’s stronger than expected US Nonfarm Payrolls (NFP) data.
Weekly technical and trading outlook – GBP/USD
GBP/USD – 1.3860.. Trading cable was tricky as price swung wildly. The pound fell to 1.3876 Mon n rebounded to 1.3957 (Wed), then dropped to 1.3873 b4 bouncings to 1.3949 in post-BOE Super Thur but later tumbled to 1.3862 on Fri.
On the bigger picture, despite cable’s brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven USD’s demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month, 1.4241 peak in late Feb suggests a major low is made.