technical analysis of currencies; An overview of the pound sterling against the US dollar trading pair

technical analysis of currencies; The British pound continued to decline against many other major currencies at the end of the week's trading in the European session, and recorded the second daily loss against the US dollar, to reach its lowest level in two weeks, after the results of opinion polls recently conducted in Britain, which showed a decline in support for the Conservative Party led by the Prime Minister. Theresa May, ahead of the parliamentary elections on June 8.

At exactly 08:20 GMT, the British pound was trading against the US dollar at the level of 1.2875 from the opening level at 1.2940, and the pair recorded its highest level at 1.2945, while it recorded the lowest level at 1.2860.

At the close of trading yesterday, Thursday, the British pound fell by more than 0.2% against the US dollar, due to the rise of the US dollar against many major currencies after the announcement of positive economic data for the United States, in addition to the British economy issuing weak data on the economic growth rates for the first quarter. from this year.

Where the British economy recorded a growth of about 0.2% during the first quarter of this year, and this data came less than expectations that indicated a growth of about 0.3%, while the economy recorded growth in the fourth quarter of last year at 0.6%.

The British pollster, YouGov, announced yesterday, Thursday, that it conducted an opinion poll, and its results indicated a decline in the Conservative war by about 1% from last week, as it got support for about 43%, while Labor advanced from last week by about 3% to get support for about 38%.

The majority of opinion polls indicated that Theresa May's Conservative Party has significantly advanced in the parliamentary elections, but the party's progress declined during this week, a not good sign, especially after the cancellation of a proposal by the British government towards social reforms in the country.

It is noteworthy that British Prime Minister Theresa May called last April for early parliamentary elections to receive political and social support in her negotiations to withdraw from the European Union, and those elections are scheduled to take place on 8 June.

Since the beginning of this week, the pound has been under many pressures, especially after the government's threats to stop the secession negotiations if the European Union insists on paying the British government the cost of the separation process, which is estimated at 100 billion euros.

Currency technical analysis - a look at the GBPUSD trading pair

The British pound against the US dollar is trading at the level of 1.2805, where the pair rebounded towards the downside, targeting the support level in conjunction with the presence of the Fibo line 38, as shown in the graphic.

Currency technical analysis

Currency technical analysis

Trading is now taking place below the level of the average moving indicator line, as both stochastic and MACD indicator show a negative crossover towards the bearish trend on the four-hour time frame.

Therefore, the price is expected to continue the downside trend to target 1.2750

Mohamed Abdel Khaleq

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