GBP/USD Continues Record Breaking Losing Streak

FXOpen

As opposed to the expectations developed by the emergence of hammer on the daily chart, the cable inched lower against the greenback on Monday, taking the price to less than 1.5620. Opened at 1.5679, the price surged as high as 1.5735 during the early Asian session but then dragged down as the dollar gained momentum.

Technical Analysis

As of this writing, the pair is being traded around 1.5624, moving down to test the 1.5590 support–a psychological number and multi-month low. The next support is a moderate one which lies around 1.5470. The said level acted as a support on various occasions from July 2013 to August 2013.The pair may test this level during the next couple of days.

gbpusd

On the upside, the pair will face a hurdle around 1.5940, as demonstrated by the trend line in the above chart. The entire 1.5940-1.5960 zone is an important horizontal level. The next resistance lies around 1.6000, the psychological number.

The overall bias is bearish because of the Lower Low on the daily chart. The bias will remain bearish as long as the support around 1.5590 remains intact.

Industrial production

The US industrial production figure is expected to stay at 0.2%, worse than 1% in the month before, the median projection of different economists says. Generally speaking, a lower reading is considered negative for the US economy thus a better than expected figure might accelerate the bearish pressure in the price of GBP/USD.

Capacity Utilization

The US capacity utilization remained at 79.3%, same as that of the month before, says the average forecast of different analysts. As an indicator of growth and demand, a higher reading is considered bearish for the GBP/USD. Thus, a worse than expected figure might spur bullish momentum in the price of GBP/USD.

Trade Idea

As per technical and fundamental outlook, buying the pair could be a good strategy in short to medium term if the price leaves a bullish pin bar or bullish engulfing candle on the daily chart.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High Market Analysis: GBP/USD and EUR/GBP Poised For More Losses Dollar Falls After Inflation Data: Is a Change in Medium-Term Trends on the Horizon? USD/CAD Retracts from Nearly 2-Month High Market Analysis: EUR/USD Dives While USD/JPY Continues To Rise

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P 500 Index, US Dollar, FTSE 100 Index, Gold Price

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • S&P 500
Indices

European Stock Indices Decline Amid Political Uncertainty

Today, the Eurostoxx 50 index (Europe 50 on FXOpen) has dropped below the early May minimum, reflecting escalating market concerns over the upcoming French elections, as reported by Reuters. Finance Minister Bruno Le Maire's acknowledgment that the current political crisis

Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High

The NZD/USD exchange rate has dropped from its highest level in nearly five months. On Wednesday, following the release of US inflation data, the NZD/USD rate exceeded 0.6220 for the first time since 15 January 2024.

However,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.