The British pound dropped by as much as 1% against the dollar on Monday on issues about the state of British politics before rallying lightly. Learn more with the 14 November GBPUSD Fundamental Drivers Analysis.
14 November, OctaFX – The British pound gapped lower at the open on Monday and then descended towards the 1.3050 level. This is the bottom of consolidation hence the bounce that we have noticed so far is not a great surprise. It is suspected that the uptrend line on the daily chart and of course the psychologically important 1.30 level below should both linger to pull buying pressure.
UK Market Overview
Much of the bearish pressure during the day on Monday would have been based on the over 40 MPs in the United Kingdom showing no confidence in Theresa May, and the absence of unity, of course, is something that people are anxious about when dealing with the negotiations with the EU.
On the monetary policy front, Bank of England Governor Mark Carney is scheduled to deliver a speech at 10:00 GMT. In the United States, St. Louis Federal Reserve President James Bullard will deliver remarks at 13:15 GMT. Fifteen minutes later, European Central Bank (ECB) official Benoit Coeure is also scheduled to deliver a speech.
14 November GBPUSD Fundamental Drivers Analysis
Cable recovered some lost ground on Monday after briefly falling below 1.3100. The GBP/USD exchange rate was last seen trading at 1.3117. Immediate support for cable is located at 1.3061, which represents Monday’s bottom price. On the flipside, resistance is located at 1.3140.
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