Key points of discussion:
GBP/USD trying to keep its land higher than 1.3802. The region has been significant in the last 4 months, having halted the reversal of the downturn on at least three occasions, but the pair has increased sales pressure due to the rising dollar, which may see price operations below the level of this support.
If so, keep an eye on the lower lower levels of the daily schedule as this would increase the downward pressure towards the next support area between 1.3719 and 1.3670. Looking to the future, we have seen some comments from members of the Bank of England, which means that the August MPC meeting may provide some backwinds for the pound, accelerating the momentum if more gold still appears. This is in contrast to the federal reserve, which continues to maintain its “temporary” argument that changes in monetary policy appear to be pending. The central bank will hold its next meeting at the end of the month, so things may change after the latest US CPI and PPI data, but GBP / USD may turn around if the Fed maintains its position again.
GBP / USD per day diagram
In the stock market, selling pressure on the FTSE 100 has increased as commodity prices continue to soften. The oil The Blue Chip Index gas sector has been the main success of recent sessions, threatening to fall below 7,000 for the second time this month, highlighting the struggles that buyers have to keep at the last few peaks. The virus situation in the UK is worrying for employers, as the NHS tracking system keeps many workers at home after they have been “pinged” because they are in close contact with the person who developed Covid-19. Uncertainty about interest rate changes is also reducing UK equities, as flexible financial conditions allow equities to achieve higher valuations.
The daily chart shows continued support for the FTSE 100 at around 7,000, but it is likely that the index will fall below this level as the downward pressure increases during today’s session. It also appears that the rise is limited to over 7122, which could lead to a second range trade fight in subsequent sessions.
FTSE 100 daily schedule
– Written by market analyst Daniela Sabin Hathorn
Follow Daniela on Twitter @HathornSabin