• GBPUSD remained under selling pressure for the third consecutive session on Wednesday.
  • Continued USD purchases, the UK government's plan to raise taxes contributed to the ongoing decline.
  • A convincing break below the 1.3800 confluence support has set the stage for further weakness.
At the time of the GBPUSD daily analysis of September 8, 2021 written by the GIC team, the GBPUSD pair experienced a massive sell-off on Tuesday and retreated further from around the 1.3900 mark, or the multi-week peak reached in reaction to the downbeat NFP headlines. The US dollar is back in demand due to the follow-up of a strong positive move in US Government bond yields. This, in turn, is seen as an important factor that puts downward pressure on the major currencies. In fact, the yield on 10-year US government bonds shot up to 1.385%, the highest level since mid-July amid expectations for the Fed's QE tapering announcement due in November. On the other hand, the British pound was pressured by British Prime Minister Boris Johnson's plan on Tuesday to introduce a new 1.25% health and social care levy on earned income. This comes on the back of the UK-EU standoff on the way forward for the Northern Ireland Protocol, which further acts as a stumbling block for sterling. Apart from this, concerns about the recent surge in COVID-19 cases provide an additional boost for the safe-haven greenback. This is seen as another factor contributing to the pair's overnight decline, taking several trading stops near the 1.3800 mark. Buyers largely ignored hawkish comments from Bank of England Michael Saunders, saying that resuming the asset purchase program would lead to a rise in medium-term inflation expectations. Saunders added that the economy is now approaching pre-pandemic levels and it may be right to think about raising interest rates in the next year or so. Nevertheless, the pair settled in the red zone and remained depressed for the third consecutive session on Wednesday. In the absence of major market-moving economic releases from the UK, the pair remains dependent on the USD price dynamics. Later during the US session, traders may take cues from the speech of New York Fed President John Williams. 
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What is the technical analysis of GBPUSD?

The GBPUSD daily analysis discusses the movement of the Pound Sterling is predicted to still weaken or be bearish towards the S1, S2 and even S3 levels, but if it cannot continue its weakness further, it will return to the Pivot level or it may move to the R1, R2 and even R3 levels, for details can be seen below.
  • Pivot point is at 1,38018
  • Resistance 1 = 1,38365
  • Resistance 2 = 1,38906
  • Resistance 3 = 1,39253
  • Support 1 = 1,37477
  • Support 2 = 1,37130
  • Support 3 = 1,36589
This the daily analysis of GBPUSD September 8, 2021. Still confused about how to read the analysis to be sure of profit? Don't worry, you can learn about it in the GIC Journal. In the GIC Journal, you can read articles such as "Fluctuations: Definition, Causative Factors, and How to Overcome Them", GIC Academy is a trading education platform for traders for beginners and professionals so that traders are more proficient in profit. This education can be in the form of webinars, e-books, or videos. There are many classes that you can take for free if you become a trader at GIC. Let's take a peek at Forex Academy!