GBP/USD Hot Forecast, 1st March 2021
- GBP/USD faced rejection near the 1.4000 mark and wiped a part of its intraday gains.
- A sudden pickup in the USD demand was seen as a key factor exerting some pressure.
The GBP/USD pair retreated around 60-70 pips from session tops. GBP/USD is trading around 1.3950 but off the highs. US bond yields have resumed their gains, boosting the dollar. The US ISM Manufacturing PMI and stimulus news are awaited.
The pair regained some positive traction on the first day of a new trading week and recovered a major part of Friday’s losses to sub-1.3900s, or over one-week lows. The uptick, however, lacked any strong follow-through buying, instead faced rejection near the key 1.4000 psychological mark.
From a technical perspective, the GBP/USD pair’s inability to capitalize on the positive move favours bearish traders. Sustained weakness below the 1.3900 mark will reinforce the negative outlook. Support awaits at 1.3840, last week’s trough. Further down, 1.2860 and 1.13830 are eyed. Critical resistance awaits a 1.40, which is a psychologically significant level and also the daily high.
The material has been provided by InstaForex Company – www.instaforex.com