Traders Still Look Bearish on GBP to USD Exchange Rate

The British Pound to Dollar exchange rate rebounded Back following Yellen’s conference sees US dollar conversion rate fade across the board. GBP/USD currency converter rate move forward from its weekly lows, as USD exchange rate investors were unconvinced by the US jobless claims details.

US FED Chairwoman said “We judged that the case for an increase had strengthened, but decided for the time being to wait for continued progress toward our objectives”.

In the US, the number of ongoing jobless claims declined to 2,133k, which is its lowest level in the last two months. In addition, the Fed chairwoman already pointed out it would not increase interest rates until December; traders stayed dovish on the Dollar currency rate, and the GBP/USD conversion rate continues to advance.

Some bearish analysts say that the GBP to USD exchange rate is trading back above 1.30 following the Fed’s decision, but the GBP’s exchange rate undertone are soft and the British Pound converter rate remains weak fundamentally.

Several reports keep on highlighting the risks to Britain’s financial services industry, considering the outcome of Brexit.

In the latest Bloomberg report, the global banks are predicting that England will be unable to find its control over clearing of EUR-denominated swaps. Thus, they are creating emergency plans for that.

GBP/USD currency rate resting on major support at 1.2920/25, which is effectively the bottom of the June consolidation and the foundation of a larger bear block pattern.

Analysts at UOB Group stated that the bearish tone still persevere around the Pound conversion rate to USD. They believe that shorter-term energy is fading quickly and this joined with oversold conditions in the Pound Sterling exchange rate has augmented the danger of a short term low.