Title: GBP/USD Price Analysis: A drop towards 1.4000 remains in the offing
Jun 14, 2021 7:20:54 AM GMT
GBP/USD bounces however now no longer out of the woods but amid looming Brexit concerns.
The cable confirms a growing wedge breakdown at the day by day chart.
Eyes deeper losses, because the US greenback clings to latest profits beforehand of Fed.
GBP/USD is eyeing a sustained damage under the 1.4100 level, because the bears continue to be in fee amid an extensively more potent US greenback and resurfacing Brexit concerns.
The European Union (EU) officers continue to be worried approximately the Brexit stand-off, this time over Northern Ireland’s (NI) protocol issue, as they warn the United Kingdom PM Boris Johnson of the Kingdom’s reputation.
Meanwhile, a put off the UK reopening amid the developing Indian delta covid pressure additionally provides to the burden at the pound at the same time as America greenback stays hopeful beforehand of this week’s FOMC decision.
From a near-time period technical perspective, the spot showed a growing wedge breakdown on Friday after It closed the day under the ascending trend line assist at 1.4116.
Therefore, the drawback stays uncovered toward the 50-Daily Moving Average (DMA), now at 1.4005.
Ahead of that the June 10 low of 1.4073 may want to take a look at the bearish commitments.
The Relative Strength Index (RSI) has recaptured the mid line, even though seems to lack follow-via recovery, suggesting a shallow bounce.