• GBP/USD registers two-day declines amid broad US dollar strength.
  • Coronavirus crisis keeps risk-aversion in play, Brexit talks to resume from next week.
  • US data, UK’s review of social distancing measures in focus.

GBP/USD remains heavy around 1.2480, down 0.32% on a day, while heading into the London open on Thursday. Alike other major pairs, the Cable also portrays the broad greenback strength amid the coronavirus (COVID-19) crisis. Moving on, US Jobless Claims and British review of social distancing measures will join the virus updates for fresh direction.

Although the UK’s death toll, due to the pandemic, has recently eased, by 761 versus 778 the previous day, the biggest single-day surge in the US death toll keeps favoring the market’s risk aversion.

Even so, US President Donald Trump and the UK’s Chief medical officer Chris Whitty remain optimistic about the nearness to the peak of the pandemic.

Elsewhere, Brexit negotiators from the European Union (EU) and the UK have agreed to resume talks after a brief break due to the virus. “The next round will begin next week, with further talks scheduled for the weeks of 11 May and 1 June,” said The Guardian.

Amid all these, the market’s risk-tone remains heavy with shares in Asia and the US stocks flashing red signals.

The UK policymakers might cross wires during the day to convey the progress of the latest social distancing measures wherein any hints of how the government will break the lockdown could be awaited.

On the economic calendar, the US Jobless Claims, housing market data and Philadelphia Fed Manufacturing Survey, coupled with the BOE’s first quarter (Q1) Credit Conditions Survey, will be watched closely. Also important will be and a speech by the BOE policymaker Silvana Tenreyro.

Technical analysis

A sustained break of short-term support line keeps the sellers on the lookout of 21-day SMA, currently near 1.2230, during the further downside.

Additional important levels

Overview
Today last price 1.2476
Today Daily Change -43 pips
Today Daily Change % -0.34%
Today daily open 1.2519
 
Trends
Daily SMA20 1.2217
Daily SMA50 1.2569
Daily SMA100 1.2825
Daily SMA200 1.2657
 
Levels
Previous Daily High 1.2631
Previous Daily Low 1.2436
Previous Weekly High 1.2487
Previous Weekly Low 1.2165
Previous Monthly High 1.3201
Previous Monthly Low 1.1412
Daily Fibonacci 38.2% 1.2511
Daily Fibonacci 61.8% 1.2557
Daily Pivot Point S1 1.2426
Daily Pivot Point S2 1.2334
Daily Pivot Point S3 1.2232
Daily Pivot Point R1 1.2621
Daily Pivot Point R2 1.2723
Daily Pivot Point R3 1.2816

 

 

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