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

Sterling At A Standstill

By InstaForex GroupForexJun 28, 2021 06:54AM ET
Sterling At A Standstill
By InstaForex Group   |  Jun 28, 2021 06:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

No wonder, the currency market traded quietly on Friday amid the empty economic calendar. The data on personal income and spending in the US was the only publication to set the market in motion. In fact, GBP/USD responded with modest fluctuations because the data is of secondary importance.

The pound sterling lost some ground. In fact, it made efforts to assert strength because personal spending in the US stayed flat in May, confounding the forecast for a 0.4% increase. Flat personal spending is a negative sign. It means that being the main driver of the US economy, consumer activity logs zero growth. As personal income contracted 2.0%, there are no conditions for expansion in consumer activity.

Curiously enough, this data is to blame for sterling’s weakness. Analysts had predicted personal income to shrink 3.0%. Still, such downbeat data both on personal spending and income is better than expected. GBP/USD has been trading with minor fluctuations. Today, the currency pair will hardly be able to escape from the range-bound market. Today, the economic calendar is also empty, hence there are no market catalysts.

US Personal Spending

GBP/USD has been able to pass downwards almost half of the correctional move that occurred in June 21-23. The psychological level of 1.4000 serves as resistance where the price ended its upward correction.

On the grounds of the average volatility per 24 hours, the currency pair seems to moderate its decline. At the same time, traders are stepping up speculative activity that could invigorate the dynamic of GBP/USD.

Looking at the current price action, the pair has got stuck at around 1.3870 that coincides with the halt on June 22.

We can suppose that the price halt at near 1.3870 acts as interim support. In case the price holds firmly below 1.3855, it is likely to move lower towards 1.3785.

In terms of complex indicator analysis, we see that technical tools are signaling selling opportunities as GBP/USD is currently trading lower after the recent upward correction.

InstaForex Group

Sterling At A Standstill

Related Articles

Sterling At A Standstill

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