Pound Sterling Price News and Forecast: GBP/USD 100-bar SMA checks downside to two-week-old support trendline
|GBP/USD Price Analysis: 100-bar SMA checks downside to two-week-old support trendline
Having breached a six-day-old support line, now resistance, GBP/USD takes rounds to 1.2455, down 0.40 on a day, during the Asian session on Monday. The Cable currently takes rests on the 100-bar SMA level near 1.2450, a break of which could drag it further down to a bit broader support line, around 1.2410.
If at all sellers fail to respect 1.2410 support trend line, 1.2380 might check the bears ahead of pleasing them with the late-April low surrounding 1.2250/45. Alternatively, a falling trend line from Thursday’s top, at 1.2515 now, can guard the pair’s recovery moves ahead of 1.2600 resistance mark.
GBP/USD Forecast: Fears of an extended economic setback weigh on Sterling
The GBP/USD pair retreated sharply at the end of the week after flirting with April’s monthly high, settling around the 1.2500 level. The April UK Markit Manufacturing PMI was downwardly revised to 32.6, worse than expected, while Consumer Credit plunged to £-3.8 B in March. PM Johnson was optimistic about the coronavirus situation, as he tweeted that the kingdom is “past the peak and on the downward slope.” Nevertheless, it is quite unlikely that the UK will lift the lockdown anytime soon, suggesting an extended economic setback ahead.
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