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British Pound (GBP) Price Outlook: GBP/USD Poised to Break Lower?

British Pound (GBP) Price Outlook: GBP/USD Poised to Break Lower?

Martin Essex, MSTA, Analyst

GBP price, news and analysis:

  • GBP/USD could be heading lower, breaking out from a triangle pattern on the charts.
  • The pair won’t be helped by possible curbs on UK travelers heading overseas.
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Downside risk for GBP/USD

GBP/USD is looking technically weak now a symmetrical triangle has formed on the charts. As can be seen below, if the pair drops under the triangle’s support line it could fall further to around 1.3530 though it would likely take a few days to do so. That follows a lengthy period of sideways trading in GBP/USD followed by a decline from the June 16 high at 1.4121 to the June 21 low at 1.3786 and then a small recovery.

GBP/USD Price Chart, Two-Hour Timeframe (May 19 – June 29, 2021)

British Pound (GBP) Price Outlook: GBP/USD Poised to Break Lower?

Source: IG (You can click on it for a larger image)

We have a special report here on how to read a candlestick chart

From a fundamental perspective, there is little to move GBP, though it could suffer marginally from news that UK travellers could face restrictions when heading overseas. German Chancellor Angela Merkel is currently pushing for EU-wide restrictions on British holidaymakers amid concerns about the Covid-19 delta variant first discovered in India. Both Spain and Greece have said they will welcome UK tourists with a negative Covid test but Portugal and Malta have announced quarantine-on-arrival rules for travellers from the UK.

--- Written by Martin Essex, Analyst

Feel free to contact me on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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