- The Cable continues to trade on a range-bound market but the bias looks to be to the downside.
- The EU and the UK are continuing to argue over Northern Ireland, potentially weakening the pair modestly, and it could also suffer from persistent talk that a further lifting of UK coronavirus restrictions may be postponed.
GBP/USD continues to trade within a relatively tight range between resistance at the 1.4249 high recorded on June 1 and the 1.4083 low touched on June 4. With the markets generally lacking direction at present, that provides an opportunity for range traders, who can benefit when prices are moving sideways with no clear trend higher or lower.
GBP/USD has dropped under 1.4150, as renewed US dollar strength exerts pressure on the pair. From a fundamental perspective, the bias looks to be modestly lower. According to reports, the EU is ready to consider retaliating against the UK for what it sees as the UK flouting its post-Brexit obligations regarding Northern Ireland. The EU and the UK are due to hold talks tomorrow and if these fail then GBP could suffer.
Support awaits at 1.4110, which provided support on Friday. The next cushion is 1.4080, which is June low. It is followed by 1.4050 and 1.4010.Resistance awaits at 1.4200 a psychological round figure mark, which held GBP/USD down in early June, and then 1.4220, a cap from late May, ahead of the 2021 peak of 1.4250.
