Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Trading news
Back
30 Jul 2021

GBP/USD consolidates near multi-week tops, around mid-1.3900s

  • GBP/SUD was seen consolidating its recent strong gains to the highest level since June 24.
  • A modest USD strength held bulls from placing fresh bets and capped the upside for the pair.
  • The downside seems limited as traders now eye US Core PCE Price Index for a fresh impetus.

The GBP/USD pair seesawed between tepid gains/minor losses through the early European session and was last seen trading in the neutral territory, just above mid-1.3900s.

The pair was seen oscillating in a narrow trading band through the first half of the trading action on Friday and consolidated its recent strong gains to the highest level since June 24. It is worth reporting that the GBP/USD pair has rallied over 400 pips from multi-month lows touched last week amid optimism over the declining trend in new COVID-19 cases in the UK.

However, a modest US dollar strength held traders from placing fresh bullish bets and kept a lid on any further gains, at least for the time being. As investors looked past Thursday's softer US GDP print, worries about the potential economic fallout from the fast-spreading Delta variant of the coronavirus benefitted the greenback's relative safe-haven status.

That said, Fed Chair Jerome Powell's dovish remarks on Wednesday acted as a headwind for the USD. During the post-meeting press conference, Powell emphasised that they were some ways away from substantial progress on jobs. Powell was also cautious about tapering and said that it will take a few more meetings before the Fed starts slowing its massive monetary support.

Apart from this, a fresh leg down in the US Treasury bond yields – triggered by the risk-off impulse in the market – might further cap the upside for the greenback. Hence, it will be prudent to wait for some strong follow-through selling before confirming that the GBP/USD pair has topped out in the near term and positioning for any meaningful corrective slide.

There isn't any major market-moving economic data due for release from the UK on Friday, leaving the GBP/USD pair at the mercy of the USD price dynamics. Later during the early North American session, traders will take cues from the release of the US Core PCE Price Index. The Fed's preferred inflation gauge might influence the USD price dynamics and provide some impetus.

Technical levels to watch

 

Jul 30, 2021

Spain Retail Sales (YoY) dipped from previous 19.6% to 1.4% in June

Spain Retail Sales (YoY) dipped from previous 19.6% to 1.4% in June
Read more Previous
Jul 30, 2021

USD/CHF now points to some consolidation – Commerzbank

In light of the recent price action, USD/CHF could now move into a consolidative phase, noted Karen Jones, Team Head FICC Technical Analysis Research
Read more Next