GBP/USD Is Neutral-To-Bullish As Per Settling Above The 61.8% Retracement Of The March Rally

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GBP/USD Current price: 1.3760

• A scarce UK macroeconomic calendar keeps GBP/USD range bound.
• Brexit jitters and the coronavirus Delta variant undermine demand for the pound.
• GBP/USD is neutral-to-bullish as per settling above the 61.8% retracement of the March rally.

The GBP/USD pair recovered from an intraday low of 1.2693 to end the day with modest gains around 1.3740. The pound was among the worst performers among high-yielding currencies, unattractive amid the absence of local data and Brexit jitters. The British currency is also being affected by the spread of the coronavirus Delta variant in the UK, as the country keeps reporting over 30,000 new cases per day. A study developed in the country showed that protection from vaccines wanes after six months of receiving the shots.

GBP/USD short-term technical outlook

The GBP/USD pair is trading a few pips above the 61.8% retracement of its March advance at around 1.3730. The 4-hour chart shows that a bullish 20 SMA provided intraday support, although it also shows that the pair is below the longer moving averages, with the 100 SMA crossing below the 200 SMA. In the meantime, the Momentum indicator eases within positive levels while the RSI consolidates around 56, skewing the risk to the upside without confirming a new leg higher.

 Support levels: 1.3725 1.3670 1.3620

Resistance levels: 1.3730 1.3780 1.3825

Image by Jan Vašek 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.