GBP : Latest

(Thu, 25 Feb 2021).

GBP EASING BACK

GBP/AUD, GBP/NZD and GBP/CAD are all losing ground Thursday, perhaps warning of a more general near-term setback for the British Pound. That, however, would likely do little to halt the broad advance in the currency once any correction is over. As can be seen in the chart below, GBP/AUD has eased to its lowest level for a month as AUD benefits from the prospect of a recovery in the global economy from the slump caused by the coronavirus pandemic. However, the January 20 low at 1.7584 should provide some near-term support if the slide in the pair continues.

Similar patterns can be seen in the GBP/NZD and GBP/CAD charts below, with 1.8862 the key support level for GBP/NZD, the low touched on February 4, and 1.7350 the support level for GBP/CAD, the low touched by the pair the same day.

From a fundamental perspective, the next big event for Sterling traders will be the UK Budget next Wednesday, when Chancellor of the Exchequer Rishi Sunak is reported to be announcing giveaways to help the UK economy bounce back post-lockdown. Note, though, that Budgets rarely have a major impact on Sterling.

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