GBP/USD Forecast: Pound finally reacts to risk appetite
Premium|You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
Your coupon code
FXS75
GBP/USD Current price: 1.3832
- The American dollar fell amid resurgent demand for high-yielding assets.
- The UK macroeconomic calendar has nothing to offer until next Tuesday.
- GBP/USD has turned bullish in the near-term, with an immediate resistance at 1.3845.
The British Pound was the most benefited from risk-appetite, recovering from an intraday low of 1.3715 on Friday to hit a weekly high of 1.3842, closing it a handful of pips below the level. The impressive U-turn had no particular catalyst but speculative interest moving away from the greenback and jumping into high-yielding assets. The fact that the pair settled above the 1.3800 threshold opens the door for another leg north this week.
Meanwhile, the coronavirus vaccine rollout continues in the kingdom, with the number of new daily contagions averaging 2,000 in the past week. The number of new deaths, however, has decreased sharply, down to 34 per day, according to the latest reports. The path to normal continues in the kingdom, providing it with an economic advantage. The UK macroeconomic calendar has nothing to offer until next Tuesday when the country will publish employment-related data.
GBP/USD short-term technical outlook
The GBP/USD pair has turned bullish according to the daily chart, rising sharply after meeting buyers around a mildly bullish 100 SMA and settling well above the 20 SMA. Technical indicators have picked up after testing their midlines, maintaining their positive slopes although within familiar levels. In the 4-hour chart, the bullish potential is stronger, as the Momentum indicator heads north almost vertical, while the RSI advances around 63. Also, the pair closed above its 200 SMA, although it would need to extend its advance to confirm the bullish breakout.
Support levels: 1.3805 1.3760 1.3715
Resistance levels: 1.3845 1.3890 1.3930
GBP/USD Current price: 1.3832
- The American dollar fell amid resurgent demand for high-yielding assets.
- The UK macroeconomic calendar has nothing to offer until next Tuesday.
- GBP/USD has turned bullish in the near-term, with an immediate resistance at 1.3845.
The British Pound was the most benefited from risk-appetite, recovering from an intraday low of 1.3715 on Friday to hit a weekly high of 1.3842, closing it a handful of pips below the level. The impressive U-turn had no particular catalyst but speculative interest moving away from the greenback and jumping into high-yielding assets. The fact that the pair settled above the 1.3800 threshold opens the door for another leg north this week.
Meanwhile, the coronavirus vaccine rollout continues in the kingdom, with the number of new daily contagions averaging 2,000 in the past week. The number of new deaths, however, has decreased sharply, down to 34 per day, according to the latest reports. The path to normal continues in the kingdom, providing it with an economic advantage. The UK macroeconomic calendar has nothing to offer until next Tuesday when the country will publish employment-related data.
GBP/USD short-term technical outlook
The GBP/USD pair has turned bullish according to the daily chart, rising sharply after meeting buyers around a mildly bullish 100 SMA and settling well above the 20 SMA. Technical indicators have picked up after testing their midlines, maintaining their positive slopes although within familiar levels. In the 4-hour chart, the bullish potential is stronger, as the Momentum indicator heads north almost vertical, while the RSI advances around 63. Also, the pair closed above its 200 SMA, although it would need to extend its advance to confirm the bullish breakout.
Support levels: 1.3805 1.3760 1.3715
Resistance levels: 1.3845 1.3890 1.3930
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.