GBP/USD Is Among The Weakest And Could Fall Further Against Its American Rival

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GBP/USD Current price: 1.3876

• Britain's new health minister Sajid Javid announced restrictions will be lifted on July 19.
• The UK reported roughly 23K new coronavirus cases, the largest one-day increase in months.
• GBP/USD is among the weakest and could fall further against its American rival.

The GBP/USD pair advanced to an intraday high of 1.3939, trimming gains ahead of the close to finish the day unchanged around 1.3880. The pair shed ground ahead of Wall Street’s opening on renewed dollar’s demand, fueled by higher US government bond yields. Yields retreated and demand for the greenback receded, but GBP/USD could not bounce.

Britain's new health minister Sajid Javid affirmed that coronavirus-related restrictions would be lifted on July 19, as the government sees “no reason to go beyond” that date. Meanwhile, the UK reported 22,868 new coronavirus cases, the largest one-day increase in five months, amid the spread of the Delta variant. The news fell short of helping the pound, which remained under selling pressure. This Tuesday, the UK will release May money-related data, including Mortgages Approvals.

GBP/USD short-term technical outlook

The GBP/USD pair approached the daily descendant trend line broken last week, retreating from it, indicating dominant selling interest. In the 4-hour chart, a bearish 20 SMA provides intraday resistance below the mentioned line. Technical indicators stand within negative levels, without clear directional strength but maintaining the risk skewed to the downside. The slump will likely accelerate on a break below 1.3840, the immediate support level.

Support levels: 1.3840 1.3795 1.3750

Resistance levels: 1.3905 1.3950 1.4010

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.