- GBP/USD drops by over 0.40%, exerting pressure by frail data in Great Britain and the discrepancy of the Boe Fed policy, favoring the dollar strength.
- Israel hits Iranian nuclear and military places; Iran, the opposite with a bust of drones, fueling a global risk mood.
- Rallie Dlolary US Safe-Haven Flows and an confident Sentiments report of the University of Michigan in June.
GBP/USD fell on Friday by over 0.40%, because geopolitical tensions caused flow towards the status of Dollar Haven after Israel began an attack on Iran, which escalated the conflict in the Middle East. The pair traded nearly 1.3550s after reaching the annual summit of 1,3631.
Sterling drops from high annual because war fears and a mighty demand for a data lift in the USA
According to Israeli officials, Israel attacked Iran’s nuclear facilities, rocket factories and military commanders. Iran Media revealed that explosions were heard in Tehran and Natanz, with the latter crucial for the Iranian nuclear program.
As a consequence, Iran took revenge against Israel and sent over 100 drones to Israel.
In addition to geopolitics, Greenback was strengthened by the latest consumer report of the University of Michigan (UOM) in June, which showed that households are becoming more confident about the economy. The indicator increased from 52.2 to 60.5, while inflation expectations dropped by one year, from 6.6% to 5.1%, and for a period of five years, from 4.2% to 4.1%.
On the other side of the pond, the British Economic House was absent on Friday. Despite this, the data during the week showed that the economy is slowing down. Production activity, employment and economic growth of a complex scenario for Chancellor Rachel Reeves, who announced an overview of expenses.
In the tiny period, the path of the lowest resistance is that GBP/USD may still be lower due to risk aversion. In addition, the discrepancy among central banks would favor the American dollar, because the Federal Reserve officials (FED) adopted a more neutral attitude.
Meanwhile, SWAPS markets valued at 50 base points to soothe the Bank of England (Boe) at the end of the year.
GBP/USD price forecast: Technical perspectives
GBP/USD may consolidate in the near future, despite the fact that the pair reached the two -day levels of 1.3515. However, the buyers bought a DIP and pushed a few above, and they ordered the sign 1.36. The relative force indicator (RSI) remains stubborn, but is approaching the 50-neutral line, which indicates that the buyers will breathe.
If GBP/USD cleans 1.3600, the next resistance would be high at 1.3631 and then 1.37. And vice versa, if the pair drops below 1.3550, they open the door to challenge 1,3500.
British pound price this week
The table below shows a percentage change in the British pound (GBP) compared to the main currencies this week. The British pound was the strongest in relation to the Australian dollar.
| USD | EUR | GBP | JPy | BOOR | Aud | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -1.28% | -0.35% | -0.48% | -0.75% | -0.02% | -0.17% | -1,15% | |
| EUR | 1.28% | 0.93% | 0.80% | 0.52% | 1.29% | 1.12% | 0.12% | |
| GBP | 0.35% | -0.93% | -0.04% | -0.40% | 0.37% | 0.19% | -0.80% | |
| JPy | 0.48% | -0.80% | 0.04% | -0.27% | 0.41% | 0.26% | -0.79% | |
| BOOR | 0.75% | -0.52% | 0.40% | 0.27% | 0.72% | 0.59% | -0.40% | |
| Aud | 0.02% | -1.29% | -0.37% | -0.41% | -0.72% | -0.17% | -1,15% | |
| NZD | 0.17% | -1.12% | -0.19% | -0.26% | -0.59% | 0.17% | -0.98% | |
| CHF | 1.15% | -0.12% | 0.80% | 0.79% | 0.40% | 1.15% | 0.98% |
The heat map shows percentage changes in the main currencies towards each other. The basic currency is collected from the left, and the quote currency is collected from the upper order. For example, if you choose a British pound on the left column and move along the horizontal line to the American dollar, the percentage shift displayed in the field will represent GBP (base)/USD (quote).
