GBP/USD recaptures 1.3900 amid UK easing optimism

GBP/USD is back on the bids amid risk-on mood, weaker DXY.
The UK PM Johnson eases lockdown but puts foreign travel on hold.
Focus shifts to the US ISM Services PMI amid a quiet Easter Monday.

Dhwani Mehta FXStreet

Fresh bids emerged for GBP/USD, allowing a bounce back above the 1.3900, as the bulls look to revisit three-week highs.

The cable remains at the mercy of the US dollar price action so far this Tuesday’s trading, initially reaching multi-week highs at 1.3915 amid the overnight slump in the greenback. However, the sellers returned after the risk sentiment deteriorated and revived the haven demand for the US dollar.

Resurfacing concerns over China’s credit growth combined with skepticism on the strength of the US economic recovery dampened the investors’ sentiment in Asia, lifting the greenback from lower levels.

Heading towards the European opening bells, the GBP bulls have regained control, as the traders hit their desks and react positively to the UK Prime Minister Boris Johnson’s confirmation of further lockdown easing in England.

Johnson confirmed restaurants, pubs and shops will open again as England’s lockdown is eased next week although said that the earliest date for resuming non-essential international travel will be May 17.

Further, higher vaccination rates in the Kingdom underpins the sentiment around the pound. According to the latest data from the UK Health Services, more than 5 million people in the country have received their second dose of a coronavirus (COVID-19) vaccine.

In the day ahead, the sentiment around the US dollar will continue to dominate the major amid a data-empty UK docket.

GBP/USD technical levels

GBP/USD

Overview
Today last price	1.3907
Today Daily Change	0.0007
Today Daily Change %	0.05
Today daily open	1.3901

Trends
Daily SMA20	1.3848
Daily SMA50	1.3851
Daily SMA100	1.3667
Daily SMA200	1.3308

Levels
Previous Daily High	1.3914
Previous Daily Low	1.3813
Previous Weekly High	1.3853
Previous Weekly Low	1.3706
Previous Monthly High	1.4017
Previous Monthly Low	1.3671
Daily Fibonacci 38.2%	1.3875
Daily Fibonacci 61.8%	1.3852
Daily Pivot Point S1	1.3838
Daily Pivot Point S2	1.3776
Daily Pivot Point S3	1.3738
Daily Pivot Point R1	1.3939
Daily Pivot Point R2	1.3976
Daily Pivot Point R3	1.4039

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD faces next resistance near 1.1930

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GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

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