On Tuesday, Pound declined against the strong Dollar to the support level of 1.4150.
No major releases were scheduled yesterday, leaving analysts focused on the upcoming decision by the British government to fully restart the economy. The pound has been trading in a consolidation mode against the dollar for three weeks in the range of 1.4100-1.4200. Analysts say the pair's recent moves were largely driven by the dollar. The incoming strong economic data from the US is making investors nervous about a possible tightening of the Fed's policy.
The weekly volatility and shifts in the positioning of the pound were not accompanied by excessive movements in the spot market, which suggests that the fluctuations are more related to reporting formalities than to actual changes in market sentiment. Speculators cut their net short positions to the Dollar last week, according to data from the U.S. Commodity Futures Trading Commission. Nevertheless, the overall net position on the pound remains long, meaning the market is in a state of balance, betting on strengthening. British retailers reported a substantial increase in sales in May after lockdown measures ended and an easing of restrictions in the hotel sector attracted more shoppers in major cities. The British Retail Consortium said total sales last month were 10% higher than in May two years ago.
Forex trading. Pound/Dollar GBP/USD forecast for today June 9, 2021
In the forecast, the Pound/Dollar exchange rate is expected to decline further to the levels of 1.4125, 1.4100 and 1.4075.