GBP/USD Forecast: Reopening optimism keeps supporting the pound

Valeria Bednarik FXStreet

GBP/USD Current price: 1.3875

UK Health Minister Sajid Javid confirmed they would move forward with reopenings.
The Bank of England will publish the Financial Stability Report on Tuesday.
GBP/USD holds on to its positive stance, needs to break the 1.3940 resistance level.

The GBP/USD pair swung alongside the market’s mood, ending the day with modest losses at around 1.3880. The pair recovered during US trading hours amid the better performance of Wall Street, although the Pound was also supported by comments from Sajid Javid. The British Health Minister confirmed that the country is on track to beat its vaccination target and that they will move to the next stage of the road map to “normal.” Meanwhile, the UK keeps reporting over 30,000 new coronavirus cases per day.

The UK did not release macroeconomic figures, although, on Tuesday, the BOE will present the Minutes of its latest meeting and the Financial Stability Report. Also, the country will present the June BRC Like-For-Like Retail Sales for June.

GBP/USD short-term technical outlook

The GBP/USD pair maintains its bullish stance in the near-term, as it trades around 1.3880. The 4-hour chart shows that the price holds above its 20 and 100 SMAs, with the shorter gaining upward strength. The Momentum indicator advances within positive levels while the RSI is stable at 59, indicating limited selling interest. Still, the pair needs to clear the 1.3940 static resistance level to be able to extend gains at a firmer pace.

Support levels: 1.3870 1.3820 1.3780

Resistance levels: 1.3940 1.3990 1.4035

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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