British pound (GBP) price outlook
- Fear of the day off as witches continue to grow.
- US dollar takes a risk-free offer.
The British pound is under general pressure due to market fears that today’s relaxation of locking measures will add to the sharp increase in bad cases across the country. The number of new recidivism cases has risen sharply in recent weeks, mainly due to the spread of the delta variant, and there is growing fear that the UK may reintroduce some locking measures if this rise continues. Although mortality remains low, the UK government will need to reconsider the country’s new found freedom as hospital numbers continue to rise.
The US dollar is offering a new offer as markets become abruptly risk-free in early trading. The chart below shows that the dollar basket is within a well-defined channel, and last week’s peaks of around 92.84 have been removed from today’s move. The next target is 93.46, which is the peak of several months on March 31.
US Dollar (DXY) Daily Card (July 19, 2021)
GBP / USD is having trouble holding the 1,3700 handle and is back to the level last seen in April. Now the pair is moving towards substantial support around 1.3670 and it would otherwise have to hold GBP /USD may return to 1.3540 or lower. The chart shows the sold signal – CCI – and it can stop all lower steps for a short time.
GBP / USD daily price chart (July 19, 2021)
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IG customer sentiment data show that traders have increased their net GBP / USD positions during the week. The latest data show 69.81% of traders are net long and the ratio of long to short traders is 2.31: 1.The number of net long traders is 7.77% higher than yesterday and 41.07% higher than last week, while the number of net short traders is 6.00% lower than yesterday and 29.89% lower than last week.
We usually view the contradictory situation of the crowd and the fact that traders are net long indicates a continuing decline in GBP / USD prices.Merchants are online longer than yesterday and last week, and the combination of the current mood and recent changes gives us a stronger controversial trading reason for the decline in the GBP / USD.
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