The recent data surrounding the GBP/USD pair shows that it has been trying hard to resist the downtrend. The data suggests that the pair has been facing a negative trend for the past few days.
The downtrend continued for two days, but the buyers tried resisting it, and even the recent inaction was not able to save the pair.
Factors Affecting the GBP/USD Pair
As of now, multiple factors are in play that may negatively influence the value of the pair.
The entire investment community of GBP/USD is bracing itself to review multiple factors where the announcement of the new UK PM candidate is pending.
The investors are also waiting for the inflation data to come out alongside retail sales and UK employment data. With these factors in view, the investors will make the decision to go ahead with their investments in the pair.
The investors will be setting up their calendar accordingly, and they may eye the Fed Minutes as well before making any investment calls.
GBP/USD Value to fall into Bearish Territory
It is expected that the sellers may start taking action pulling the trading price of the pair even lower. However, they may initiate their selling spree if the value of the pair falls below the 1.2175 mark.
The 1.2175 mark acts as the 23.6% Fibonacci retracement level that is witnessed for the latest uptrend. From this point, the investors may start selling GBP/USD on a larger scale and attempt to extend the downward correction.
If the sellers continue with their selling spree, then the pair’s value may dip to $1.2150. Going forward, the selling power of the bears may bring the pair down to 1.2100.
However, the particular trend may be witnessed only when the mentioned factors end up driving the pair negatively. This would be a huge upset for the pair and drag its trading price even lower.
Upside Prediction for GBP/USD
On the upside, the pair will be able to go all the way up to the psychological level, which currently stands at 1.2200. Then comes the interim resistance for the pair, which is set to 1.2275.
Once the pair reaches 1.2275, then it will continue moving more into the bullish zone. The next trading level for the pair would be at 1.2300. Once the pair reaches 1.2300, it would become the psychological level.
The 1.2300 mark would also act as the resistance level for the pair.
Report by the ONS
Just recently, the Office for National Statistics (ONS) of the United Kingdom shared the economic figures. It has revealed that the country’s economy has moved in a negative direction having contracted by 0.1% in the second quarter.