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Jun 24 - 06:55 AM

GBP/USD - COMMENT-Cable At Risk From Quadruple Whammy, Expect A Drop

By Martin Miller  —  Jun 24 - 05:10 AM

GBP/USD will likely come under severe pressure in the weeks ahead due to continued UK political uncertainty, negative signs emerging in the British economy, a medium-term bearish chart and a dollar that looks set to soar.

Boris Johnson's Conservatives lost two parliamentary seats on Thursday, a blow that prompted the resignation of the party's chairman and intensified doubts about the future of Britain's prime minister. nL1N2YB02I

Meanwhile British consumers cut back on shopping in May in the face of high inflation, and a measure of their confidence sank to a record low this month, according to data that underscored the scale of a cost-of-living squeeze. nL8N2YB0XK

The weekly chart's outlook is bearish, as fourteen-week momentum remains negative, reinforcing the risk of a weekly close under the 1.2083 Fibo - a 76.4% retrace of the 1.1413 to 1.4250 (2020 to 2021) rise.

The bullish dollar looks ripe to make bigger gains due to technical and fundamental factors and this will help exert downward pressure on GBP/USD. nL1N2Y90M3

For more click on FXBUZ


Source:
Refinitiv IFR Research/Market Commentary

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