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GBP/USD trades close to 1.3600 after BOE’s Bailey downplayed negative rate expectations by calling it a controversial issue. The cable also remains buoyed by an increase in the UK vaccination campaign and tentative signs of the disease peaking in London.
Some support awaits at the 1.3450 former double-bottom, followed by the 2021 troughs which coincide with 50% fibonacci retracement and was a cushion in late 2020. Further down, GBP/USD is set to reach 1.3430 and 1.33.
Moreover, the RSI continues to confirm the downtrend extending from the August extremes. This suggests that the path of least resistance will be lower in the near term.
Alternatively, pushing above the psychologically important mark of 1.3500 could inspire a rebound towards the monthly high (1.370).
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
Franc Beck,
Analytical expert
InstaForex Group © 2007-2021
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