24.09.202016:58 Forex-elemzések és áttekintések: Pound to decline if failed to overcome strategically important level

According to most analysts, the pound sterling is in close proximity to a strategically and psychologically important value, overcoming which in the literal sense may be vital for it. The pound's growth prospects depend directly on how quickly and how confidently it rises above the $1.27 mark.

To date, the pound has stopped showing excessive volatility and has almost recovered from the negative that happened to it earlier. However, there is no particular desire for the currency to grow either. This may be due to the fundamental news, which has not been very positive recently. There are many factors that alarm market participants and limit their actions. The most serious pressure is exerted by the data on the growing cases of the COVID-19 patients around the globe which forces the introduction of regular quarantine restrictive measures. This negative is reinforced by the unimpressive statistics on economic recovery in various regions of the world, which are gradually published in the press.

The future dynamics of the pound sterling will depend if it manages to overcome the $1.27 mark. This moment will be an important point for making forecasts for further changes in the GBP/USD currency pair. Analysts suggest recalling the situation that happened in February this year when the sterling was able to successfully cope with the bearish trend, which allowed it to rush up to the level of $1.32 per pound.

Nevertheless, now is a slightly different time, financial risks have become much greater, and pessimism about the global economic recovery does not leave investors. There is particular tension in the run-up to the US presidential election. However, if the pound still loses its position and closes below the level of $1.2624, the fall will inevitably continue further. The next mark will be $1.2480 which will act as the support of the pound sterling. From here, the pound may decline to the level of $1.2250 and even lower.