The British Pound has declined sharply against the US dollar. What can GBPUSD traders expect next? Will the pair continue the downward trend?
4 October, OctaFX – The sterling declined sharply against the US dollar. This decline was due to the strong dollar, mixed economic data and Theresa May’s speech at the Tory party conference.
Her speech was reviewed by pundits as being sincere and better than her performance in 2017. She talked about the future of UK businesses after leaving the European Union and called for members to support her plan. With no major economic data expected today, traders will focus on tomorrow’s jobs numbers from the US.
GBPUSD Declines Against US Dollar
The GBPUSD pair declined sharply to an intraday low of 1.2921. This price is close to the 38.2% Fibonacci Retracement level as shown in the four-hour chart below.
The pair’s price is along the lower Bollinger Band, a sign that it is a strong downward trend. The RSI is currently at 29, which is a sign that the downward trend is strong too. Therefore, the pair will likely continue moving lower to the 1.2900 level.
This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.