GBP/USD Forecast: Modest advance as UK-covid situation improves
Premium|Take advantage of 50% OFF on your first month.
50% OFF and access to ALL our articles and insights.
You have reached your limit of 5 free articles for this month.
Take advantage of the Special Price just for today!
50% OFF and access to ALL our articles and insights.
Subscribe to PremiumGBP/USD Current price: 1.3625
- The number of new daily coronavirus contagions in the UK keeps decreasing.
- The United Kingdom will publish inflation updates on Wednesday.
- GBP/USD is technically neutral in the near-term, needs to extend above 1.3660.
The GBP/USD pair regained the 1.3600 level at the beginning of the day amid broad dollar’s weakness, but spent most of the last two sessions consolidating, unable to extend gains. No relevant data was coming from the UK, while coronavirus-related news were a bit encouraging. The country reported roughly 33,3K new coronavirus contagions in the last 24 hours, far from the highs above 60K from a couple of weeks ago.
The United Kingdom will publish December inflation data this Wednesday. The December CPI is foreseen at 0.5% YoY, while the core reading is expected at 1.3%. The country will also publish the Producer Price Index and the Retail Price Index for the same month.
GBP/USD short-term technical outlook
The GBP/USD pair is trading in the 1.362 price zone, neutral-to-bullish in the near-term. The 4-hour chart shows that it is trading a few pips above a flat 20 SMA, which develops above mildly bullish longer ones. Technical indicators hover around their midlines, the Momentum advancing but the RSI flat at 54. Bulls would have better chances on a break above 1.3660, the immediate resistance level.
Support levels: 1.3585 1.3530 1.3490
Resistance levels: 1.3660 1.3710 1.3760
GBP/USD Current price: 1.3625
- The number of new daily coronavirus contagions in the UK keeps decreasing.
- The United Kingdom will publish inflation updates on Wednesday.
- GBP/USD is technically neutral in the near-term, needs to extend above 1.3660.
The GBP/USD pair regained the 1.3600 level at the beginning of the day amid broad dollar’s weakness, but spent most of the last two sessions consolidating, unable to extend gains. No relevant data was coming from the UK, while coronavirus-related news were a bit encouraging. The country reported roughly 33,3K new coronavirus contagions in the last 24 hours, far from the highs above 60K from a couple of weeks ago.
The United Kingdom will publish December inflation data this Wednesday. The December CPI is foreseen at 0.5% YoY, while the core reading is expected at 1.3%. The country will also publish the Producer Price Index and the Retail Price Index for the same month.
GBP/USD short-term technical outlook
The GBP/USD pair is trading in the 1.362 price zone, neutral-to-bullish in the near-term. The 4-hour chart shows that it is trading a few pips above a flat 20 SMA, which develops above mildly bullish longer ones. Technical indicators hover around their midlines, the Momentum advancing but the RSI flat at 54. Bulls would have better chances on a break above 1.3660, the immediate resistance level.
Support levels: 1.3585 1.3530 1.3490
Resistance levels: 1.3660 1.3710 1.3760
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.