GBP/USD Offers A Neutral-To-Bullish Stance In The Near-Term

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GBP/USD Current price: 1.3813

• A better UK coronavirus-related situation took off the pressure on the pound.
• The UK macroeconomic calendar will have nothing relevant to offer this week.
• GBP/USD offers a neutral-to-bullish stance in the near-term.

The GBP/USD pair trades near a daily high of 1.3838, advancing on the broad dollar’s weakness. Market players sold the American currency ahead of the US Federal Reserve decision on Wednesday and the release of the preliminary estimate of the US Gross Domestic Product for the second quarter of the year. On the contrary, the macroeconomic calendar will be quite light in the UK, with nothing relevant scheduled for this week.

The Sterling Pound found additional support in an improvement in the coronavirus front. The number of new cases is on a downtrend for a fifth consecutive day,  while on average, contagions have decreased roughly 40% on a weekly basis. There was silence on the Brexit front, also supportive of the UK currency.

GBP/USD short-term technical outlook

From a technical point of view, the GBP/USD pair is neutral-to-bullish. The 4-hour chart shows that it has extended its advance above a flat 100 SMA after steadily finding buyers on approaches to a bullish 20 SMA. Technical indicators ease within positive levels, with the RSI holding near overbought readings but the Momentum approaching its midline. The bullish case will firm up on a break above 1.3840, the immediate resistance level.

Support levels: 1.3800 1.3760 1.3715

Resistance levels: 1.3840 1.3890 1.3930

Image by PublicDomainPictures 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.