GBP/USD has gone into a consolidation phase near mid-1.1800. This was after having suffered heavy losses and declined toward 1.1800 earlier in the day. The pair remains at the mercy of the dollar’s market valuation heading into the weekend.
The GBP/USD pair has suffered heavy losses and dropped to its lowest level in a month below 1.1900. The pair stays on the backfoot on Friday and additional losses could be witnessed in case safe-haven flows continue to dominate the financial markets in the second half of the day.
It’s worth noting, however, that the near-term technical outlook suggests that the pair could make a correction before the next leg lower.
There won’t be any high-tier data releases from the US ahead of the weekend and the risk perception could impact the dollar’s valuation. The US stock index futures have been down between 0.6% and 0.9%. This suggest that safe-haven flows could continue to support the dollar in the second half of the day.