GBP/USD Forecast: Concerns about PM Johnson’s health weighed on the Pound
|GBP/USD Current Price: 1.2226
- UK PM Johnson has been taken to intensive care amid persistent coronavirus symptoms.
- UK Cabinet delayed its meeting amid Boris Johnson’s absence, spurring uncertainty.
- GBP/USD remains stuck to 1.2300, the risk is skewed to the downside.
The GBP/USD pair started the day losing ground, despite increased demand for high-yielding currencies, but managed to trim its intraday losses to hit a daily high of 1.2326. Pound’s weakness was linked to the uncertainty about UK PM Boris Johnson’s health. The Prime Minister reported mild coronavirus symptoms on March 27 and has been hospitalized on Sunday. The official stance is that he has been admitted due to “persistent symptoms” instead of the previous mild, but that he remains “very much in charge of the government.”
Foreign Secretary Dominic Raab was in charge of the daily coronavirus meeting, although the UK Cabinet meeting has been postponed for Tuesday. High levels of uncertainty likely to keep Sterling under pressure. Ahead of the US close, news agencies confirmed that PM Johnson was taken into intensive care, pushing the pair toward its daily lows near the 1.2200 figure.
GBP/USD short-term technical outlook
The GBP/USD pair is trading well below the 50% retracement of its latest daily slump, where it met sellers throughout the day. In the 4-hour chart, the pair has continued to develop below a mild-bearish 20 SMA, while between the larger ones, which also head marginally lower. Technical indicators have accelerated their declines after within negative levels, skewing the risk to the downside. A steeper decline is to be expected on a break below 1.2200, the immediate support level.
Support levels: 1.2200 1.2160 1.2125
Resistance levels: 1.2260 1.2305 1.2350
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