The greenback has been recovering from the latest collapse and the GBPUSD pair briefly dipped below the 1.40 mark during the London session, losing 0.60% on the day.
Later in the evening, the BOE Governor Mark Carney is due to testify before the House of Lords Economic Affairs Committee in London, which might bring further volatility to sterling pairs.
From the US dollar perspective, traders will focus on the consumer confidence gauge, which is expected to tick higher to 123.2 from 122.1 in the previous month. However, this number rarely has an impact on the greenback.
The GBPUSD pair is now testing the first major support of the psychological level near 1.40, where the short-term bullish trend line is converged with previous highs. If not held, further decline toward the 1.39 level might occur and a consolidation phase might begin.
The resistance for today’s trading is located around 1.4050 and if bulls will be stronger, the 1.41 handle might be the next target. In all cases we strongly recommend to have rigorous money and risk management.
Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.