GBPUSD was doing very well for a long time. However with sentiment turning towards the US dollar đź’˛ we eventually saw a breakout of the wedge formation. How low can this goâť“
The British pound was doing very well in January partly on the back of relief after clinching the EU divorce deal which was not that certain towards the end of 2020. UK also enjoys a fairly good vaccination pace which may help the economy rebound sooner. However, at the same time present restrictions are among the most stringent and the level of activity is low. Furthermore, rising bond yields in the US help USD and the EURUSD pair is testing 1.20 with a good chance of breaking lower. This adds pressure to GBPUSD and as we can see the pair broke out lower from the wedge formation and also broke the short term support zone. With no obvious support in sight, can it go all the way down to the base of the wedge at 1.32?
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr SÄ…dowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
