GBPUSD WEEKLY ANALYSIS – POUND DOMINATED BY BEARS

Following the previous report on GBP/USD, the pair extended a perfect rebound from the bottom-level of its falling wedge back towards the top-level near 1.3120, before defying all its technical indicator as it breakout below the support near 1.2800 and its falling wedge formation. The pair now test its support level near 1.2930.
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In terms of MACD, tables turned quickly from a bullish sign, now forming a death cross back into a bearish momentum, breaking easily as well both of the EMA. With high fluctuations in just a week’s time, the pair is expected to consolidate around its support level until further catalyst triggers the market.
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From the fundamental point of view, market sentiment continues to be disrupted by the Covid-19 as total cases around the world continues to spike, pressuring central banks to push for economic stimulus to support the downfall. Bank of England (BoE) called for an emergency rate cut of 50 basis point to 0.25% on Tuesday, addressing the severeness of the virus towards its economy.
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Besides that, UK Finance Minister Rishi Sunak also implemented a fiscal stimulus of £30B to support the jobs, people as well as businesses in effort to boost its economy amid the pressure faced by the market. Recent plunge for the pound was also contributed by a stronger dollar, as the seriousness of the Covid-19 dampened market sentiment.
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For the week ahead, with lack of economic data and halt in UK-EU trade talks due to the Covid-19, investors will focus on FED interest rate decision and its policy meeting to gauge the near term market sentiment.