GBP/USD Forecast: Variant fears may end holiday calm and send sterling down
Enjoying the spring? The haze in London may keep British traders at home on a bank holiday, and that is not necessarily pound-positive. At the moment, markets are calm amid the long weekend in both the US and the UK, and after Friday's choppy trading, triggered by end-of-month adjustment.
Now that money managers have finished adjusting the portfolios, it is time to reexamine the fundamentals. People residing in the UK may enjoy the long weekend at home and in several European countries – but not in France nor Germany, where they are required to quarantine. These restrictions serve as a reminder of the B.1.167.2 variant. Sterling is on the back foot due to these fears. Read more...
GBP/USD: Trading recommendations
GBP/USD maintains positive long-term dynamics, moving within the upward channel on the daily chart. Its upper border passes through the level of 1.4300 and after the breakdown of the local resistance level of 1.4240, this mark will become the closest target of the GBP/USD growth.
More distant growth targets for the pair are resistance levels at 1.4580 (Fibonacci level of 50% correction to the decline of the GBP/USD pair in the wave that began in July 2014 near the level of 1.7200), 1.4800, 1.4830. Read more...
GBP/USD: Fears of COVID-19 variants and robust US data to push cable lower
At the moment, markets are calm amid the long weekend in both the US and the UK, and after Friday's choppy trading, triggered by end-of-month adjustment. But fears of COVID-19 variants may end holiday calm and send sterling down, FXStreet’s Analyst Yohay Elam briefs.
“People residing in the UK may enjoy the long weekend at home and in several European countries – but not in France nor Germany, where they are required to quarantine. These restrictions serve as a reminder of the B.1.167.2 variant. Sterling is on the back foot due to these fears.” Read more ...
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