GBP/USD Current price: 1.3492
- The UK reported record coronavirus contagions for a second consecutive day.
- GBP/USD keeps losing bullish momentum, holds amid broad dollar's weakness.
The GBP/USD pair managed to advance in the last few sessions but struggled to extend gains beyond the 1.3500 level, peaking for the day at 1.3522. The advance resulted from the broad dollar’s weakness, as demand for the pound continues to be undermined by Brexit and coronavirus-related headlines. About this last, the UK has reported over 53K new coronavirus cases in one day this Tuesday, unprecedented infection levels in the country.
Regarding Brexit, the UK Parliament is scheduled to discuss it this Wednesday. According to the latest headlines, a group of pro-Brexit Conservative lawmakers will back the EU-UK agreement after concluding that it “preserves the UK’s sovereignty.” Early Wednesday, the UK will publish December Nationwide Housing Prices, seen at 6.7% YoY.
GBP/USD short-term technical outlook
The GBP/USD pair is trading in the 13490 price zone, with limited bullish potential. In the 4-hour chart, the 20 SMA acts as dynamic resistance around 1.3520. The longer moving averages remain below the current level, without directional strength. Technical indicators remain below their midlines, indicating absent buying interest. A steeper decline could be expected on a break below 1.3420, a strong static support level.
Support levels: 1.3465 1.3420 1.3360
Resistance levels: 1.3520 1.3550 1.3595
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
AUD/USD: Positive bias expected to continue
AUD/USD came under pressure after hitting a new peak north of the key 0.6700 the figure in a context of renewed strength in the Greenback and mixed results from the Australian labour market.
EUR/USD appears bid above the 200-day SMA
EUR/USD faced some renewed offered stance on the back of a tepid bounce in the Dollar. Despite the corrective move, the pair seems well poised to extend its bullish trend in the short-term horizon.
Gold aims to retest the $2,400 area
Gold advanced toward $2,400 on Wednesday as US Treasury bond yields pushed lower following the April inflation data. The recovery in US yields combined with the US Dollar's resilience after Jobless Claims data, however, causes XAU/USD to retreat toward $2,370 on Thursday.
Bitcoin price holds above $65.5K threshold as world’s largest futures exchange plans to launch BTC trading
Bitcoin’s (BTC) price rally on Wednesday was shocking, steered by the April Consumer Price Index (CPI) data release in the US. Speculation and market sentiment inspired the surge as traders and investors interpreted the news of softened inflation as a signal that central banks may maintain loose monetary policy.
April CPI: Worst good news ever
The monthly rise in prices based on the Consumer Price Index (CPI) came in slightly lower than projected, sending a wave of euphoria across the financial landscape. The consensus is cooling inflation puts Federal Reserve interest rate cuts back on the table.