The GBP/USD price outlook is bullish as the US dollar is consistently losing ground after Powells speech. However, the rise in Covid in the UK may hamper the gains.
The GBP/USD exchange rate rose during the Asian trading session on Monday. Although the pair opened lower, it traded higher due to a broad dollar sell-off.
In a speech last week, Fed Chairman Powell said the central bank was likely to start tightening before the end of this year. However, there will be no change in the Feds current trading range until the economy reaches maximum employment and inflation.
A major effort is underway from the UK government to fight the chaos of Brexit, so they have rejected requests by a logistics trade body to temporarily relax immigration rules after Brexit due to the threat of shortages of truck drivers and other serious disruptions. Each link in the supply chain contributes to the process.
To gauge market sentiment, investors are waiting for the US home sales statistics.
GBP/USD Price Technical Outlook
The GBP/USD pair fell to the broken trend channel resistance turned support and is again rising towards the 1.3800 area (200-period SMA on the 4-hour chart). The congestion of 20/50 SMAs on the same chart at 1.3732 also continue to support the upside.
The average daily range is so far 40%. The volume is slowly declining for the last few bars. This is a hurdle for the bulls. Otherwise, the Pound bulls look healthy to acquire 1.3800.
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