British Pound (GBP) Price Outlook: More Losses Likely for GBP/USD
GBP price, news and analysis:
- GBP/USD is looking technically weak, with 1.3786 the near-term target after the pair’s drop from 1.40 last Wednesday.
- That’s despite confirmation that UK GDP contracted by 6.1% year/year in the first quarter of 2021 and a likely truce in the so-called sausage wars between the UK and the EU.
GBP/USD outlook still bearish
From a technical perspective, GBP/USD looks likely to extend it recent decline from its high at 1.40 last Wednesday, June 23. As the two-hour chart below shows, the immediate target to the downside is the 1.3786 low recorded on June 21 but if that breaks the 1.3670 low touched on April 9 will likely be the bears’ next target.
GBP/USD Price Chart, Two-Hour Timeframe (May 20 – June 30, 2021)
Source: IG (You can click on it for a larger image)
In the news, data released this session confirmed that UK GDP contracted by 6.1% year/year in the first quarter of this year but the data had no impact, being of historic interest only.
Source: DailyFX calendar
Also in the news, a truce to end a continuing post-Brexit trade row between London and Brussels over the movement of chilled meats from Great Britain to Northern Ireland, called the sausage wars, is reported to be close ahead of Thursday’s deadline. However, that has been well signalled so will leave GBP/USD unaffected.
--- 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.