GBP/USD Forecast: Buying interest limited ahead of Johnson’s speech
|GBP/USD Current price: 1.2412
- UK PM Johnson will announce this Sunday the government’s plan to ease lockdown measures.
- GBP/USD holding above 1.2400 but unable to extend its gains.
The GBP/USD pair has managed to post a modest advance by the end of the week but was unable to fully reverse previous losses, ending it the red just above the 1.2400 level. The UK has become the new epicentre of the coronavirus outbreak in Europe, amid PM Johnson’s initial “herd immunity” strategy that proved wrong. The kingdom entered a lockdown too late, and this Sunday, Johnson is expected to announce the government’s plan to unlock the UK economy in stages. Ramping up testing is still an unsolved issue in the UK ahead of a slow return to normal. The UK won’t release macroeconomic data at the beginning of the week.
GBP/USD short-term technical outlook
The daily chart for the GBP/USD pair shows that it has briefly pierced the 23.6% retracement of its latest bullish run at 1.2350, but held above it at the end of the week. In the mentioned time-frame, the pair is below a flat 20 DMA, while technical indicators hover around their midlines, lacking directional strength. In the 4-hour chart, the pair has failed to overcome its 100 SMA but remains above the 20 and 200 SMA. Technical indicators lost bullish strength after entering positive ground, indicating limited buying interest around the pair.
Support levels: 1.2390 1.2350 1.2310
Resistance levels: 1.2430 1.2485 1.2520
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