GBP/USD: The Pound kicks off the week on a relatively soft note. However, with volatility remaining muted, GBP/USD trades within a familiar range, which is likely to persist in the short term amid the lack of notable economic events on today’s calendar. The plan to reopen on June 21st remains in doubt in light of the spread of the so-called Delta variant. Scientists have estimated that the Delta variant spreads 40% more rapidly than previous UK variants and thus raises the possibility that the UK could delay plans to reopen by an additional two weeks. As such, while the government’s decision will have short-term ramifications for the Pound amid a shift in sentiment, the economic ramifications are likely to be muted. Support in Cable is situated at 1.4080-90, marking last week’s lows, while on the topside resistance sits at 1.4235-50.
GBP/USD Chart: Daily Time Frame
GBP/JPY: A chart to watch will be the GBP/JPY with the cross now testing a multi-year trendline, stemming from the 2007 peak. What’s more, resistance is situated at 156.61, which marks the 2018 peak, while a bearish weekly RSI divergence hints at a potential turning point for the cross.
GBP/JPY Chart: Weekly Time Frame
GBP remains within range. Delta variant raises reopening doubts, while GBP/JPY eyes multi-year levels.
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