The GBP/USD continues to lose ground in early trading today and the depths of the forex pair are bringing into view long term perspectives.

The GBP/USD is traversing near the 1.17500 level as of this writing.  Yesterday’s high of nearly 1.18310 began to wave early and support levels have continued to prove vulnerable. On the 17^th and 18^th of August the GBP/USD was still above the 1.20000 level and some speculators may have thought support lines could be held at those ratios. However, selling of the GBP/USD continues to grow and its pace downwards yesterday certainly quickened.

Long term charts and historical perspective will be debated as the value of the GBP/USD currency pair is challenged.  During coronavirus and the days of the Brexit chaos the GBP/USD did test low depths, but both those events were overcome. The forex pair was able to climb and reached what many financial houses – particularly in the U.K – believe was a more ‘reasonable’ equilibrium between 1.30000 and 1.40000 with outliers being seen on occasion. The price of the GBP/USD is now lower than it was during the worst of Brexit fears, when the 1.19000 ratio came into sight.

Coronavirus, Brexit and Ronal Reagan Topics of Discussion with GBP/USD

During coronavirus the GBP/USD sank below the 1.15000 level in March of 2020, but by September 2020 the currency pair was again above 1.30000. Traders and financial houses this time around may not believe a quick turnaround should be expected. Putting aside Brexit and coronavirus, the last time the GBP/USD traded this low was when Ronald Reagan was President of the U.S and Margaret Thatcher was leading the U.K. The USD was strong at that time due to massive growth created by Reagan’s economic policy. The GBP/USD touched the 1.05000 level in January of 1985.

• Decision on U.K Prime Minister will be known on September the 5^th.
• Can the BoE keep pace with the Fed to safeguard value of the GBP/USD?

Traders Looking for Reversals Higher Short Term in the GBP/USD need to be Careful

The GBP/USD does appear to be oversold from a historical perspective.  The GBP/USD has a long track record of trading at much higher values. However, short term traders who believe the forex pair is suddenly going to turn around and march higher need to keep their ambitions in check. Economic events are turbulent. U.S Federal Reserve policy remains unclear, but will likely remain hawkish over the next few months. And the decision regarding who will be the next Prime Minister of the U.K will be decided in a little less than two weeks.

Coming events this week via the central bankers meeting in Jackson Hole, Wyoming will factor into Forex via speeches made. The long term lows being tested by the GBP/USD are certainly attractive as speculative wagers, but traders should remain conservative. Psychological marks like the 1.17000 level may become a factor. If the 1.17300 mark is suddenly tested and the 1.172500 level were to prove weak, this could set off additional alarm bells. Traders need to use total risk management and keep their targets realistic. Looking for upside movement via natural reversals higher may seem tempting, but in the short term should be done with extreme caution.

GBP/USD Short Term Outlook:

Current Resistance: 1.17500

Current Support: 1.17400

High Target: 1.18240

Low Target: 1.16900

SOL/USD has traded lower in early market action this morning, after hitting solid short term highs the past two days the cryptocurrency faces a struggle.

SOL/USD is trading below the 45.0000 level as of this writing with its typical fast conditions. Solana was able to provide bullish traders with upside movement the past two days and challenged the 48.2500 vicinity on the 30^th and 31^st of May, but headwinds have settled into the broad market for many of the major digital assets as potential profit takes an effect.

While SOL/USD was able to demonstrate a rather solid incremental climb the past handful of days, the cryptocurrency still remains within the lower part of its long term price range. Solana remains dangerously close to its prices of August 2021. Most other major cryptocurrencies plunged through their August and July prices of 2021 a few weeks ago, when massive selling hit the digital assets, but SOL/USD has been able to remain above these ratios.

The move higher the past few days has been encouraging for bullish traders, but because SOL/USD remains so close to its August 2021 prices, skeptics may still believe further room can be explored lower.  The broad cryptocurrency market remains within its bearish trend, a few days of positive trading may be the start of a strong reversal higher, but it may prove to only be a vacuum sucking people in who are optimist and preparing to cost them money if the downturn picks up momentum again.

If SOL/USD were to fall below the 44.0000 price short term, this would be a poor indicator.  Rather important support lurks near the 43.0000 level and if bearish selling suddenly shows price velocity this could prove to be a rather negative signal for Solana. On the 27^th of May SOL/USD was trading below the 41.0000 level momentarily. If market conditions in the broad market remain caught in a downturn, SOL/USD has the ability to fall to lows not tested since July of 2021.

SOL/USD is a fast mover.  Speculators need to use their full array of risk management when trading Solana, including entry price orders, take profit and stop loss tactics. SOL/USD was able to show some optimistic results the past few days, but a reversal lower would not be a surprise at this time with a re-test of lows seen only a handful of days ago when Solana traded below 41.0000.

Solana Short-Term Outlook

Current Resistance: 45.6200

Current Support: 44.3000

High Target: 56.0600

Low Target: 42.2700