The GBPUSD chart is in a situation where the price has reached the monthly support range. Accordingly, the price encounter to this level can determine the direction of movement, whether the price is accompanied by growth up to 1.3972 or falls to 1.3673.
The dollar maintained its recent positive tone in early European trade Wednesday, as the spreading outbreak of Covid-19 cases in Asia prompts risk aversion ahead of the release of key U.S. jobs data.
The GBP/USD pair edged up 0.13% to 1.3853.
The pair struggled to capitalize on its intraday positive move, instead met with some fresh supply near the 1.3860 region and was pressured by a combination of factors. Against the backdrop of the dovish Bank of England, worries about the spread of the more contagious Delta variant of the coronavirus acted as a headwind for the British pound.
“GBP/USD again sold off yesterday. The negative outlook remains entrenched while capped by the 1.4018 near-term pivot.
Next 1-3 weeks: “We have maintained the same narrative since the middle of last week where GBP ‘could trade within a 1.3820/1.4020 range’.
Moving on, the Final print of the UK’s Q1 GDP, expected to confirm -1.5% QoQ forecasts, may offer immediate reaction to GBP/USD prices, mostly upside on positive surprises