Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Pound Under Pressure

By MarketPulse (Kenny Fisher)ForexAug 20, 2021 06:38AM ET
Pound Under Pressure
By MarketPulse (Kenny Fisher)   |  Aug 20, 2021 06:38AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The British pound has steadied on Friday, after suffering sharp losses a day earlier. GBP/USD is currently trading at 1.3627, down 0.07% on the day.

The pound is hoping for a quick end to what has been a miserable week quickly. The currency has fallen 1.7% so far this week.

UK Retail Sales slide

UK Retail Sales in July fell by 2.5% compared to June, well off the forecast of +0.4%. It was a similar story for Core Retail Sales, which came in at -.2.4%, versus 0.3% exp. Still, the reaction of the pound has been muted, as the picture isn’t nearly as grim if we look at the overall picture. Retail Sales were up 5.2% in the three months to July compared to the previous three months, and 5.8% higher than in February 2020, prior to Covid-19.

Nevertheless, the pound is in trouble, as the US dollar continues to roll. Sterling is closing in on its lowest level since February, and we could see the currency drop into 1.35-territory early next week.

Investors have been flocking to the safe-haven US dollar, as risk appetite has eroded due to surging infections rates of the delta variant of Covid. This has led to renewed lockdowns and health restrictions and could hamper the nascent global recovery.

The dollar has looked sharp post-FOMC, as the markets judged the Fed minutes to be hawkish, despite the lack of a timeframe for a tapering. With most members on board for a taper on either side of December, it’s clear that a taper is a question of when, rather than if, at this stage. The minutes stressed that there was no mechanical link between tapering and rate hikes. This is not really a new development, as the Fed has said in the past that it does not plan to raise rates before tapering is completed.

With risk appetite curbed by a resurgence in Covid and investors on alert for the announcement of a timeframe for tapering, the outlook for the US dollar remains positive.

GBP/USD Technical Analysis

GBP/USD Daily Chart
GBP/USD Daily Chart

  • On the upside, there is monthly resistance at 1.3659. Above, there is resistance at 1.3749
  • There is support at 1.3409, followed by 1.3247

Original Post

Pound Under Pressure

Related Articles

Kathy Lien
FX: Big Week Ahead, What To Watch By Kathy Lien - Oct 25, 2021 15

Inflation and GDP reports from the U.S. and Eurozone along with three central bank monetary policy announcements makes for a busy trading week. Big tech names, like Amazon...

Kenny Fisher
Euro Dips As Business Confidence Slows By Kenny Fisher - Oct 25, 2021 1

The euro has started the new trading week with slight losses. At time of writing, EUR/USD is trading at 1.1623, down 0.18% on the day.German business confidence slowsThe Ifo German...

Pound Under Pressure

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email