As the dollar is going to rebound in oversold condition and record net short position in the past 10 years, the dollar will go further down. GBP is meeting resistance in 1.38. At this moment, GBP is testing 20-day MA. A close below it will open the room for more downside movement for GBP.
GBP hit the low in March 2020 and rally for 10 months so that a rally can last for 2-4 months.
A 23.6% test will be 1.32 the redline support, and a test of 38.2% means GBP will test 1.2850. At this moment, the UK's pandemic is still out of control. A more strict lockdown is coming in. Furthermore a Downing Street has been warned by Brussels that downgrading the status of the EU’s ambassador to the UK will poison diplomatic relations for years to come.
US 10 year treasury yield hit bottom and started the rally in Jun 2020. so it's due for DXY to rally now. Look for 2-4 months of USD rally.
Though Brexit has finally materialized, the GBP rally paused. Look for GBP retracement.
GBP hit the low in March 2020 and rally for 10 months so that a rally can last for 2-4 months.
A 23.6% test will be 1.32 the redline support, and a test of 38.2% means GBP will test 1.2850. At this moment, the UK's pandemic is still out of control. A more strict lockdown is coming in. Furthermore a Downing Street has been warned by Brussels that downgrading the status of the EU’s ambassador to the UK will poison diplomatic relations for years to come.
US 10 year treasury yield hit bottom and started the rally in Jun 2020. so it's due for DXY to rally now. Look for 2-4 months of USD rally.
Though Brexit has finally materialized, the GBP rally paused. Look for GBP retracement.