GBP/USD Current price: 1.4133
- UK political risks set temporarily aside amid the prevalent dollar’s weakness.
- The UK keeps marching toward a return to normal after reporting no new covid deaths.
- GBP/USD is poised to extend its advance despite extreme overbought conditions in the near-term.
The British Pound soared to 1.4158 against the greenback, regardless of persistent political risks. UK Prime Minister Boris Johnson called on Sunday for talks with Scotland, Wales and Northern Ireland after Scotland SNP's pro-independence party won parliamentary elections. On a positive note, local elections in the UK further strengthened Conservative Prime Minister Boris Johnson's party, with the opposite Labour party losing a parliamentary seat.
Meanwhile, the UK keeps marching towards normality. The country reported zero new covid-related deaths for the first time in over a year and continues with its reopening program. On May 17, the country will allow larger outdoors and indoor meetings, while social distancing with close family and friends will be a matter of personal judgement. Data wise, the UK will report April BRC Like-for-Like Retail Sales during the Asian session, seen at 14.8% from 20.3% in March.
GBP/USD short-term technical outlook
From a technical point of view, the GBP/USD pair seems poised to extend its advance, despite extreme readings. The 4-hour chart shows that the price consolidates gains in the 1.4140 region, over 150 pips above a bullish 20 SMA, which accelerated north above the longer ones. Technical indicators hold within extreme overbought levels, with no signs of changing course. The immediate resistance is 1.4181, February 25 daily high, with a break above it exposing this 2021 high at 1.4237.
Support levels: 1.4110 1.4065 1.4020
Resistance levels: 1.4180 1.4235 1.4290
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.