The GBP/USD continues to struggle around the 1.38 price mark, trading slightly lower as domestic concerns halt the pair’s advance. The US Dollar closed lower against the Pound on Aug 13 after the weakest consumer sentiment data in 10 years hit the market. However, domestic challenges from the Brexit front and local criticism about the UK’s involvement in the stunning Taliban takeover of Afghanistan have taken the shine of the risk-sensitive Pound.
The recent takeover of Afghanistan by the Taliban is also drawing angst, with ITV’s Kate Garraway lashing out at the UK PM’s response to the unfolding situation on the Good Morning Britain programme.
The pair trades 0.06% lower as low-volume trading dominates the pair’s activity this Monday.
The pair was rejected at the 1.38616 resistance at the close of last week, and it continues to trade around that area. This area is also the site of the upper edge of the consolidation area of the bullish flag. The expectation is for the price to clear this area, completing the pattern and targeting 1.39484, 1.4005 and 1.40602. These barriers must give way for 1.41008 to come into the picture as the projected completion point of the measured move from the pattern.
Conversely, a descent from the current resistance targets 1.38126, with 1.37463 and 1.36771 being the additional targets to the south of the price decline, continues. This move would invalidate the flag.
Follow Eno on Twitter.