GBP/USD Forecast: UK PM Johnson still to decide a lockdown
|GBP/USD Current Price: 1.1531
- UK Markit preliminary PMI seen contracting in March.
- PM Johnson appealing people to stay at home, considering the closure of non-essential shops.
- GBP/USD could challenge the multi-decade low set last week at 1.1409.
The GBP/USD pair peaked at 1.1714 at the beginning of the day but ended it in the red around 1.1530. UK PM Boris Johnson addressed the nation on Sunday, announcing that the government will start to take special steps to fight the coronavirus outbreak, warning that the UK is heading towards a lockdown, after appeals to stay indoors were largely ignored. The number of cases in the UK has jumped to 5,911 while the death toll rose to 335. The soft approach of the UK government to the outbreak is back on the table, as the government is still considering whether or not to lock down the country and the closure of all non-essential shops.
Markit will release this Tuesday the preliminary estimate of the UK Manufacturing PMI for March, foreseen at 45 from 51.7 previously. The Services PMI is also expected at 45 down from 53.2 in February.
GBP/USD short-term technical outlook
The GBP/USD pair is heading into the Asian session maintaining its bearish stance, as, in the 4-hour chart, sellers aligned around a bearish 20 SMA rejected the advance. The Momentum indicator in the mentioned time-frame has re-entered negative ground, while the RSI hovers near oversold readings, reflecting the limited buying interest around the pair. The main support for the upcoming sessions is the multi-decade low seen last week at 1.1409.
Support levels: 1.1495 1.1450 1.1405
Resistance levels: 1.1580 1.1620 1.1675
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