GBP/USD Forecast: Nearing a critical Fibonacci resistance at 1.2515
|GBP/USD Current Price: 1.2469
- UK PM Johnson remains clinically stable and responding to treatment, left ICU
- UK data came in better than expected, but key indicators remained in the red.
- GBP/USD flirting with 3-week highs just ahead of the 1.2500 level.
The GBP/USD pair has kept advancing to trade as high as 1.2480 this Thursday. The advance can be attributed to investors rushing away from the greenback in search of high-yielding assets, and news indicating that UK PM Boris Johnson is responding to treatment and remains clinically stable, according to the latest official report. Later in the afternoon, it was reported that he has left intensive care.
The UK released a bunch of February data which was mixed. Industrial Production was down yearly basis by 2.8% slightly better than expected, while Manufacturing Production for the same period resulted at -3.9%. The Total Trade Balance in February came in at £-11.487 B much worse than expected. UK markets will be closed this Friday.
GBP/USD short-term technical outlook
The GBP/USD pair has topped around the 1.2480 price zone in the past two weeks, while the 61.8% retracement of its March collapse comes at 1.2515, providing a more relevant resistance. The 4-hour chart shows that the price is advancing modestly above a directionless 200 SMA, while the 20 SMA turned marginally higher below the current level. Technical indicators remain within positive levels, although the Momentum remains lifeless near its 100 level. The risk is skewed to the upside, although the pair would need to extend beyond the mentioned Fibonacci resistance to be able to produce another bullish leg.
Support levels: 1.2465 12420 1.2370
Resistance levels: 1.2515 1.2560 1.2600
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