GBP/USD Forecast: Pound Remains Supported By Lockdown Easing Announcements

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: 1.4180

• UK’s Prime Minister spokesman reaffirmed the kingdom is on its way to ease lockdown.
• The UK will publish on Tuesday the May BRC Like-For-Like Retail Sales, previously at 39.6%.
• GBP/USD is neutral-to-bullish in the near-term, could re-test the year’s high at 1.4250.

The GBPUSD pair trades around 1.4180 as the US session comes to an end, holding on to most of its intraday gains. The pair advanced on the broad dollar’s weakness witnessed during US trading hours, the echoes of the poor US employment report published last Friday. As for the pound, it found support in comments from the UK’s Prime Minister spokesman, who said that nothing in current data would prevent easing the lockdown. Also, the UK health secretary said: "the majority of people in hospitals with COVID appear to be those" who haven't been fully vaccinated.

The UK did not publish macroeconomic figures, but early on Tuesday will release the May BRC Like-For-Like Retail Sales, previously at 39.6%.

GBP/USD Short-Term Technical Outlook

The GBP/USD pair keeps seesawing within familiar levels, although at the upper end of its latest range, trading not far from this year´s high at 1.4250. In the near-term, the risk is skewed to the upside, as in the 4-hour chart, the pair has advanced above all of its moving averages, while technical indicators recovered into positive ground. The bullish potential, however, seems limited as moving averages lack directional strength while technical indicators offer modest bullish slopes.

Support levels: 1.4110 1.4070 1.4020

Resistance levels: 1.4200 1.4250 1.4290

View Live Chart for the GBP/USD

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.