GBP/USD Forecast: Poised to challenge the 1.4000 threshold

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3967

The UK reported 31,117 new coronavirus cases in the last 24 hours.
Broad dollar’s weakness and a better market mood boosted the pair.
GBP/USD pressures fresh monthly highs could advance towards 1.4200.

The GBP/USD pair extended its weekly rally to 1.3981, its highest in a month, underpinned by the broad dollar’s weakness. The UK macroeconomic calendar had nothing to add to the pound’s movements, while all seems quiet on the Brexit front. However, new coronavirus cases have risen for the second day in a row, rising to 31,117 in the last 24 hours. The country also reported 85 new deaths.

Meanwhile, the government is threatening with a domestic vaccine passport, aiming to get young people fully vaccinated. The UK will not publish macroeconomic data on Friday.

GBP/USD short-term technical outlook

The GBP/USD pair maintains its positive tone, trading near its daily high. The pair is overbought in the near-term, but it could keep rallying. The 4-hour chart shows that the 20 SMA heads sharply higher, retaining its strength after crossing above the longer ones. The Momentum indicator eases from daily highs while the RSI indicator consolidates around 73. The pair may meet some selling interest around the 1.4000 level, although a clear break above it could anticipate a run towards the 1.4200 price zone.

Support levels: 1.3945 1.3900 1.3860

Resistance levels: 1.4000 1.4045 1.4090

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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