GBP/USD Has Room To Extend Its Advance, Mainly On A Break Above 1.4235

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GBP/USD Current price: 1.4204

• The UK Markit Manufacturing PMI is expected to be confirmed at 66.1 in May.
• UK’s full reopening still in doubt amid the increased number of new coronavirus cases.
• GBP/USD has room to extend its advance, mainly on a break above 1.4235.

The GBP/USD pair peaked at 1.4217, retaining gains at the end of the day. The pair advanced on persistent dollar’s selling in a quiet start to the week, as both countries celebrated holidays, with local markets closed. The pair stabilized just above the 1.4200 thresholds mid-US afternoon, where it currently trades.

The UK macroeconomic calendar has been empty so far this week, but Markit will publish the UK May Manufacturing PMI, foreseen unchanged from the preliminary estimate at 66.1. The focus remains on whether the UK will be able to fully reopen by June 21 as planned or if the government would need to delay it amid resurgent coronavirus cases amid the spread of the Indian strain.

GBP/USD Short-Term Technical Outlook

The GBP/USD pair has room to extend its decline. The 4-hour chart shows that it remains above all of its moving averages, with the 20 SMA providing dynamic support in the 1.4160 price zone. Technical indicators eased within positive levels, reflecting the lack of follow-through instead of suggesting an upcoming decline. The pair topped this month at 1.4233, the level to beat to confirm a bullish extension during the upcoming sessions.

Support levels:1.4165 1.4120 1.4075

Resistance levels: 1.4235 1.4285 1.4330

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.