The Pound rebounded from its 5-month bottom. Overview for 22.07.2021


GBPUSD is slowly recovering but the risks didn’t go anywhere. 

The British Pound is successfully correcting against the USD. The current quote for the instrument is 1.3727.

The epidemiological situation in the United Kingdom still raises a lot of concerns. Starting July 19th, the country cancelled all social restrictions introduced earlier. However, the delta strain continues spreading quite quickly, which means that the number of new cases may increase and the above-mentioned social restrictions may be re-introduced. All this is rather questionable, hence alarming for the Pound.

Another negative factor for the Pound lies in the negotiations between London and Brussels. Now they are talking about Ireland. It seems like the British government decided to go to the limit and called on the European Union to go beyond their discrepancies. It will be necessary to reconsider controversial (for the UK) trade regulations for Northern Ireland. 

The EU wants all these endless and fruitless negotiations to finally end in something useful but there are few chances of success.

The United Kingdom is obviously stalling for time, although there is nothing positive for London in this delay, as well as the absence of the trade agreement. The alliance will never accept the terms offered by London, that’s for sure. The drama continues. 


Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.