GBP/USD Forecast: Unable to attract speculative interest

Valeria Bednarik FXStreet

GBP/USD Current price: 1.2450

UK final Services PMI at 13.4 in April, confirming record contraction.
The UK has become Europe’s coronavirus epicentre with over 30,000 deaths.
GBP/USD neutral-to-bearish in the short-term, heading toward the 1.2300/10 price zone.

The GBP/USD pair remained confined to a tight intraday range this Tuesday, ending the day as it started around 1.2450. The UK April Markit Services PMI was upwardly revised from 12.3 to 13.4, beating the market’s expectations of 12.2. Nevertheless, it indicated an unprecedented contraction as a result of the current coronavirus-related crisis. Meanwhile, the UK has become Europe’s coronavirus epicentre, with over 30,000 dead, surpassing those in Italy. On Wednesday, Markit will report the UK April Construction PMI, foreseen at 22 from 39.3 in the previous month.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral-to-bearish according to the 4-hour chart, hovering around a directionless 100 SMA and below the 20 SMA, this last capping the upside at around 1.2480. Technical indicators spent the day within negative levels, the momentum lacking directional strength and the RSI turning south, currently at 44. Chances are skewed to the downside with scope for a slide toward the 1.2300/10 price zone.

Support levels: 1.2395 1.2355 1.2310

Resistance levels: 1.2485 1.2530 1.2585

View Live Chart for the GBP/USD

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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