GBP/USD Forecast: Pressure mounts ahead of BOE’s Bailey speech

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3846

The UK will kick-start the coronavirus lockdown reopening this Monday.
Bank of England Governor Andrew Bailed is due to speak about the economic outlook.
GBP/USD is at risk of falling further in the near-term, immediate support at 1.3770.

The GBP/USD pair fell on Friday to close a second consecutive week with losses in the 1.3820 price zone. The pound fell throughout the first half of the day amid persistent dollar’s demand but held ground despite better than anticipated US employment figures. The rally in Wall Street and soaring oil prices provided support to the sterling. Another positive factor for the UK currency is that reopening will start this Monday, according to the plan outlined by Prime Minister Boris Johnson.

Data wise, the macroeconomic calendar remained scarce, as the kingdom released no first-tier figures. This Monday, Bank of England Governor Andrew Bailed is due to speak about the economic outlook and may provide additional support to the local currency with an optimistic stance.

GBP/USD short-term technical outlook

The GBP/USD pair trades at its lowest in three weeks, not far from a daily low at 1.3777. In the daily chart, the pair has slid below its 20 SMA, which partially lost its bullish strength, but develops well above bullish longer ones. Technical indicators head sharply lower within negative levels, indicating further declines ahead. In the near-term, and according to the 4-hour chart, the risk is also skewed to the downside. The pair is hovering around its 200 SMA while below the shorter ones, as technical indicators consolidate near oversold readings.

Support levels: 1.3770 1.3725 1.3680

Resistance levels: 1.3860 1.3905 1.3950

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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