GBP/USD Could Extend Its Decline In The Near Term On A Break Below 1.3760

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GBP/USD Current price: 1.3785

• BOE´s Saunders considers rates could go up next year.
• Soaring US Treasury yields pushed the greenback higher across the board.
• GBP/USD could extend its decline in the near term on a break below 1.3760.

The GBP/USD pair lost the 1.3800 level, although it trades nearby after bottoming for the day at 1.3767. The pair fell on the broad dollar’s demand and despite hawkish comments from Bank of England policymaker Michael Saunders, who said that the UK does not need as much stimulus as before, adding that “maybe” is right to think of rates going up “in the next year or so.”

The US had a light macroeconomic calendar, while data coming from the UK was mixed. BRC Like-For-Like Retail Sales, which printed at 1.5% in August, below the previous 4.7%. Also, Halifax House Prices in the same month were up 0.7%, better than anticipated. On Wednesday, Bank of England representatives will testify before the House of Commons in the Policy Report Hearings.

GBP/USD short-term technical outlook

The GBP/USD pair has room to extend its slide in the near term. The 4-hour chart shows that it has broken below its 20 and 200 SMAs, the latter directionless. The 100 SMA remains below the current level, also lacking directional strength. Technical indicators remain at daily lows within negative levels, with the Momentum heading south and the RSI stable at around 43.

Support levels: 1.3760 1.3715 1.3680

Resistance levels: 1.3840 1.3890 1.3930  

Image by TangledWeb from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.