GBP/USD Forecast: Hopes keeping the pound afloat

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3902

Pound benefits from a clear advance in the UK’s battle against the pandemic.
The UK macroeconomic calendar will lack relevant data this week.
GBP/USD holds around 1.3900, needs to break a Fibonacci resistance level to move higher.

The GBP/USD pair bottomed for the day at 1.3858 but trimmed intraday losses and ended the day with modest gains in the 1.3900 price zone. The American dollar advanced early in the European morning but quickly retreated as speculative interest believes that the US Federal Reserve will maintain its monetary policy on hold. The pound, on the other hand, received some attention after the UK reported that at least 50% of its population had received at least one shot of a coronavirus vaccine, with the number of daily deaths keeps decreasing.

The UK will release during the Asian session the March BRC Shop Price Index, previously at -1.5%. The kingdom won’t publish relevant macroeconomic data this week.

GBP/USD short-term technical outlook

The GBP/USD pair keeps trading between Fibonacci levels, unable to advance beyond 1.3930, the 23.6% retracement of its April rally. The near-term picture is neutral-to-bullish, as the pair develops above all of its moving averages, with the 20 SMA converging with the 38.2% retracement of the mentioned advance at 1.3880. Technical indicators have turned flat just above their midlines, skewing the risk to the upside without confirming additional gains ahead. The pair needs to clear the mentioned Fibonacci resistance that caps the upside ever since the week started.

Support levels: 1.3880 1.3835 1.3795

Resistance levels: 1.3930 1.3985 1.4020

View Live Chart for the GBP/USD

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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