GBP/USD Extends Its Consolidative Phase Near This Year's High

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: 1.4160

• The UK could delay easing lockdown measures amid a continued increase in covid cases.
• UK May BRC Like-For-Like Retail Sales were up 18.5% YoY, down from 39.6% previously.
• GBP/USD extends its consolidative phase near this year’s high.

The GBP/USD pair trades lower in range, flat on a weekly basis as it returned to the 1.4160 price zone. The pound suffered a setback at the beginning of the day from market talks indicating the UK could have to delay its plan to fully reopen on June 21, amid the spread of the Indian strain, now the dominant one in the UK. In fact, the country reported that new cases are up by 91% from last week, with 6,48 new cases in the last 24 hours. Easing lockdown measures could be postponed to July 5.

However, softening demand for the greenback kept the downside limited for the pair. The dollar eased alongside US Treasury yields during the American session as yields fell to fresh one-month lows. Data wise, the UK reported May BRC Like-For-Like Retail Sales, which were up 18.5% YoY. On Wednesday, the kingdom will release the May RICS Housing Price Balance.

GBP/USD Short-Term Technical Outlook

From a technical point of view, the GBP/USD pair maintains a neutral stance, with the price stuck around directionless 20 and 100 SMAs in the 4-hour chart. The 200 SMA heads north well below the current level. Technical indicators diverge from each other, with the Momentum heading lower and the RSI heading higher, both within neutral levels. Selling interest has been surging on approaches to the 1.4200 figure, although the pair could peak above the level on broad dollar’s weakness.

Support levels: 1.4110 1.4070 1.4020

Resistance levels: 1.4200 1.4250 1.4290

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.