GBPUSD bearish ultimately!GBP/USD has been benefiting from PM Johnson's reopening announcement last day. Prime Minister Boris Johnson's message when announcing that "Freedom Day" will arrive on July 19. England will ditch hundreds of COVID-19-related restrictions and reopen its economy in what has also been dubbed the "Big Bang." Sterling has cheered in response.
“England will ditch hundreds of COVID-19-related restrictions and reopen its economy in what has also been dubbed the ‘Big Bang.’ The opposition and health officials criticized the decision and there is plenty of time until July 19 for the PM to change his mind, as in previous occasions. If the Delta variant – responsible for 97% of cases in the UK – continues spreading fast, sterling could fall.”
“Brexit refuses to disappear and seems to already be weighing down on the pound. Maroš Šefčovič, the EU´s point 'man on the topic, said that the bloc would step up legal proceedings without any moves from the UK to remedy the violation of the agreement. London and Brussels are at odds over the implementation of the Northern Irish protocol.”
Another headwind may come from a greenback comeback. The dollar tumbled in response to the Nonfarm Payrolls report, which exceeded expectations on the headline but lacked in terms of wage growth. After traders took profits on bullish positions against the currency ahead of the long weekend, the dollar is beginning to stabilize. Data may provide it another boost.
Technically GU create bearish trend with falling wages.
