The GBP/USD quotes on the daily chart show a strong downward trend since the beginning of May. However, this month brings a significant rebound and price rise, once again to the local resistance area at 1.2750. The two previous tests of this level triggered a supply response. Yesterday, the price fell for most of the day, so perhaps we have a third rebound from these areas. Perhaps this is the end of the period of weakness of the American currency.

GBPUSD Daily

This was the result of speculation about rapid interest rate cuts at the forthcoming FED meetings. Several weaker economic readings caused speculation on this subject, fears that the trade war with China will lead to an economic slowdown in the USA, and several statements by FED members about possible reductions. On the other hand, we have nothing new on the side of the Pound, this time speculation starts about the successor to Prime Minister May. Perhaps the fears of Brexit and lack of political agreement in the UK will be stronger even than the cuts in US rates, and therefore the pound will not gain even if the rates for the dollar are cut.


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