British Pound Facing Bearish Pressure Against the US Dollar

While the GBP has been on a bullish move, today showed the currency’s weakness against the USD. The GBP, which has been in a small short term uptrend, suddenly broke the trend with a sharp downward movement. However. this does not exactly signal a continuous downward movement. There are a few other fundamental factors that may affect the price.

Possible Lockdown Exit

UK construction companies Bovis and Taylor Wimpey are planning to study the possibility of opening up their operations again starting next week. This is due to opinions about the Coronavirus infection levels already peaking. These 2 construction companies are not the only ones that may open up their operations again.

Car companies Aston Martin and JLR may also start production of cars again. The move of these companies may also prompt other businesses from across industries to carry suit. Also, PM Boris Johnson is already back at Downing Street indicating that he might put a phased exit from the lockdown in his pipeline.

The Current Status of the GBP Against the USD

The GBP is up against a strong USD which is why the currency was pushed further down. However, the sentiment still remain bullish as the downward movement was stopped short and made a recovery.

However, it is still to be seen as to what movement the GBP will make in the coming week. The phased exit of the lockdown is sure to be a factor that will affect the movement of price.

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