GBP/USD Current price: 1.3934
- UK PM Johnson noted that they need to be cautious about easing restrictions.
- The focus is on the Bank of England monetary policy meeting later in the week.
- GBP/USD seems poised to extend its corrective advance in the near-term.
The GBP/USD pair trades near a daily high of 1.3934, recovering from a fresh monthly low of 1.3785. The pound rallied despite comments from UK Prime Minister Boris Johnson, who said that cases of the coronavirus Delta variant are still going up, adding that they need to be cautious on easing restrictions. He added that data is looking good ahead of the July 19 deadline, although noting that traveling will be “difficult.”
The UK published the June Rightmove House Price Index, which was up by 7.5% YoY. On Tuesday, the country will publish May Public Sector Net Borrowing, previously at £30.962 billion. The main event this week will be the Bank of England monetary policy meeting next Thursday.
GBP/USD short-term technical outlook
The GBP/USD pair could extend its advance, according to intraday technical readings, although it’s not yet confirmed. In the 4-hour chart, the pair is above a bearish 20 SMA, while the Momentum indicator advances within neutral levels. The RSI indicator, however, is flat at around 48. Bulls could have better chances once above 1.3960, the immediate resistance level.
Support levels: 1.3890 1.3850 1.3805
Resistance levels: 1.3960 1.4010 1.4060
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 holds positive ground above 1.0700, eyes on German CPI data
EUR/USD trades on a stronger note around 1.0710 during the early Monday. The weaker US Dollar below the 106.00 mark provides some support to the major pair. All eyes will be on the Federal Reserve monetary policy meeting on Wednesday, with no change in rate expected.
USD/JPY extends recovery after testing 155.00 on likely Japanese intervention
USD/JPY is recovering ground after crashing to 155.00 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action.
Gold price bulls move to the sidelines as focus shifts to the crucial FOMC policy meeting
Gold price (XAU/USD) struggles to capitalize on its modest gains registered over the past two trading days and edges lower on the first day of a new week, albeit the downside remains cushioned.
XRP plunges to $0.50, wipes out recent gains as Ripple community debates ETHgate impact
Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony.
Week ahead: FOMC and jobs data in sight
May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.