GBP/USD Trades Near The 1.3900 Level And Could Extend Its Gains In The Near-Term

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

GBP/USD Current price: 1.3882

• The number of new coronavirus cases in the UK decreased for a seventh consecutive day.
• Market players sell the greenback ahead of US Federal Reserve’s announcement.
• GBP/USD trades near the 1.3900 level and could extend its gains in the near-term.

The GBP/USD pair trades in the 1.3890 price zone, advancing on the broad dollar’s weakness and decreasing new coronavirus cases in the UK. According to the latest data available, the UK recorded 23,511 new contagions in the last 24 hours, down for the seventh consecutive day. However, the country also reported 131 deaths, the highest reading since March.  Nevertheless, authorities are confident the pandemic will be “mostly behind us by October.”

Meanwhile, the greenback eased despite a mildly negative market’s mood as investors await the US Federal Reserve decision on monetary policy. On the data front, the UK macroeconomic calendar has nothing relevant to offer this week. On Wednesday, the country will publish the July Nationwide Housing Price Index.

GBP/USD short-term technical outlook

The GBP/USD pair could keep advancing in the upcoming sessions, as it consolidates just below the 1.3900 figure. In the 4-hour chart, the pair has advanced above all of its moving averages for the first time since mid-May, with the 200 SMA still heading lower and providing mild support at around 1.3860. The Momentum indicator is retreating from its daily high while the RSI consolidates near overbought readings, maintaining the risk skewed to the upside.

Support levels: 1.3860 1.3806 1.3760

Resistance levels: 1.3930 1.3980 1.4025

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.