- GBP / USD finds support to try a new break higher up
- FTSE 100 as the momentum grows back to within the annual range
GBP/USD tries to rise back to 1.40 after Friday ‘s sitting, taking the pair down to 1.39 after an impressive rally. Bank of England is likely to be dizzying at the end of this week, as markets are now positioning themselves for a more tedious meeting, which even suggests a split vote so that monetary policy does not change.
Given that a real change is unlikely, investors will need to feel confused after 6 weeks to find out what the bank’s position is. So far, economic data have shown significant progress towards recovery, but recent figures suggest that this is possible growth stagnation, with both retail sales and consumer inflation weaker than expected in June, and PMI data show a decline in confidence among industry professionals.
The resurgence of Covid cases in both the UK and Europe is likely to be one of the reasons for declining confidence in the economic recovery, but this impact is expected to be limited as the country still has one of the highest vaccination rates.
GBP / USD per day schedule
The V-shaped collision we’ve seen in recent sessions has been able to raise the collision, but the flow at the end of Friday helped US dollar restore a little land. The pair lacks some momentum at the beginning of the week as it tries to consolidate above 1.39 and on the horizon at 1.40. However, the GBP / USD is likely to find more resistance between 1.3940 and 1.3965 before standing at last week’s high of 1.3984. The couple is struggling to cross the 1.40 mark since the 17thth June, so it may take further momentum to reach buyers with real rest. If so, 1.4075 is likely to offer new resistance. Alternatively, a break below 1.3885 could put the pair at risk of retraction, with 1.3824 – 1.3802 being the strongest support test to date.
FTSE daily schedule
Meanwhile, there is still a lot of indecision in the stock market, but the indices do not want to let go of recent records. FTSE 100 is back trading within its last year’s highest range after a recent recall caused a bounce from 200-DMA, just 8 points above 6,800. The session has started on a strong footing, with the UK index rising 1% from opening and reaching the upper end of the range at 7122. This area is likely to offer some resistance, but with a strong boost, we saw around 7170 FTSE 100 fighting resistance in recent days.
– Written by Daniela Sabin Hathorn, market analyst
Follow Daniela on Twitter @HathornSabin