In the Asian session on Wednesday (April 19), the latest price of GBP/USD was 1.2430, and the opening price was 1.2424. Strategist Quek Ser Leang and senior FX strategist Peter Chia pointed out that GBP/USD’s selling bias is expected to lose its appeal after falling to 1.2475.
They believe that the pound will fall slightly against the dollar, but any decline is unlikely to break significantly below the main support level of 1.2275, and only a rise above 1.2475 can indicate that the downward trend has subsided. Despite this minor setback, the currency pair remains relatively steady in the face of ongoing economic uncertainty.
Details of the Dip:
The GBP/USD currency pair has been subject to a number of factors in recent weeks, including concerns over the UK’s economic recovery in the wake of the COVID-19 pandemic and uncertainty over Brexit negotiations. These factors have put pressure on the pound, leading to its slight dip against the US dollar.
However, despite these concerns, the dip has not been significant. The pound remains relatively steady against the dollar, with investors taking a wait-and-see approach to the ongoing economic and political developments in both the UK and the US.
Factors Influencing the Currency Pair:
There are a number of factors that are likely to influence the GBP/USD currency pair in the coming weeks and months. One of the key factors will be the ongoing COVID-19 pandemic, and how it continues to impact the global economy. This could have a significant impact on both the UK and the US, and could lead to further volatility in the currency markets.
Brexit negotiations are also likely to continue to impact the pound, with uncertainty over the final outcome of the negotiations leading to fluctuations in the currency. Additionally, the US Federal Reserve’s interest rate policy could impact the dollar, with any significant likely to changes GBP/USD currency pair.
While the GBP/USD currency pair has experienced a slight dip in recent weeks, it remains relatively steady in the face of ongoing economic uncertainty. Investors are taking a cautious approach, waiting to see how key factors such as the COVID-19 pandemic and Brexit Negotiations play out in the coming weeks and months.
