GBP/USD Forecast: Pound remains supported by lockdown easing announcements

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4180

UK’s Prime Minister spokesman reaffirmed the kingdom is on its way to ease lockdown.
The UK will publish on Tuesday the May BRC Like-For-Like Retail Sales, previously at 39.6%.
GBP/USD is neutral-to-bullish in the near-term, could re-test the year’s high at 1.4250.

The GBPUSD pair trades around 1.4180 as the US session comes to an end, holding on to most of its intraday gains. The pair advanced on the broad dollar’s weakness witnessed during US trading hours, the echoes of the poor US employment report published last Friday. As for the pound, it found support in comments from the UK’s Prime Minister spokesman, who said that nothing in current data would prevent easing the lockdown. Also, the UK health secretary said: "the majority of people in hospitals with COVID appear to be those" who haven't been fully vaccinated.

The UK did not publish macroeconomic figures, but early on Tuesday will release the May BRC Like-For-Like Retail Sales, previously at 39.6%.

GBP/USD short-term technical outlook

The GBP/USD pair keeps seesawing within familiar levels, although at the upper end of its latest range, trading not far from this year´s high at 1.4250. In the near-term, the risk is skewed to the upside, as in the 4-hour chart, the pair has advanced above all of its moving averages, while technical indicators recovered into positive ground. The bullish potential, however, seems limited as moving averages lack directional strength while technical indicators offer modest bullish slopes.

Support levels: 1.4110 1.4070 1.4020

Resistance levels: 1.4200 1.4250 1.4290

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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