Pound stays vulnerable – GBPUSD Forecast

Intermediate
  • A somewhat confused new lockdown directive from the UK government on Sunday alongside a rather cautious changes of advice and rules has seen the Pound stay under negative pressures versus the US Dollar.
  • There is also a negativity from both the high number of cases and deaths in the UK relative to mainland Europe and also regarding the lack of progress in trade talks with the EU.
  • Here we look at the negative bias for GBPUSD from a technical analysis perspective.

GBPUSD day trade outlook: A negative tone

A Monday selloff through 1.2356/48 supports for GBPUSD to hold just above he spike low at 1.2266 (at 1.2283), but whilst capped by 1.2374 we see  negative pressures from the late April rally failure and May selloff from just below the key 1.2647 peak (from 1.2643), to keep the risk back lower into Tuesday.

  • We see a downside bias for GBPUSD for 1.2283 and 1.2266; a break below maybe aims for 1.2247 and 1.2217.
  • But above 1.2374 aims for 1.2467 and 1.2483, which we would look to try to cap.

GBPUSD intermediate-term outlook

The latter April GBPUSD selloff below 1.2287 saw an intermediate-term shift from bullish to a broader range we see as 1.2163 to 1.2647.

  • Downside risks: Below 1.2163 sets an intermediate-term bear trend for 1.1639 and maybe 1.1410.
  • Upside risks: Above 1.2647 sets an intermediate-term bull trend for 1.3200 and maybe 1.3515.

4 Hour GBPUSD Chart

GBPUSD chart

Editor in chief

Steve Miley has 29 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Market Chartist, the Editor-in...continued

Comment on this video

Your email address will not be published. Required fields are marked *


Latest Related News

Pound upside risks with a weaker US Dollar (GBPUSD Forecast)

The “risk on” phase has extended through late May into this week, with global stock averages surging to new cycle highs.In the Forex world, the US Dollar continues to weaken (alongside the Japanese Yen), seen very much as a safe haven currency in the COVID-19 world.The positive global view continues to be driven by hopes the easing of lockdowns and the reopening of the global… Continued

Pound vulnerability eased as US Dollar weakens (GBPUSD Forecast)

Last week’s “risk on” theme has extended into this week, with many global stock averages surging to new cycle highs, whilst in the Forex space, the US Dollar has weakened, still seen as a safe haven during the current global health crisis.This global positive outlook continues to be driven by hopes of a COVID-19 vaccine, alongside the easing of lockdown restrictions and restarting of the… Continued

Bearish Triangle on USD Index Can Support GBPUSD

Hello traders, USD index is trading sideways for some time now, ideally unfolding an Elliott wave triangle correction in wave B that is part of a three-wave corrective decline. A triangle is a continuation pattern, which has five legs in a sideways range, so breakout is expected to occur lower after A-B-C-D-E sub-waves: ideally into the same direction as previous wave A.  Now we see… Continued

UK Inflation Plunges in April As Covid-19 lockdown Hits Oil Prices

Headline inflation lowest in over three yearsFalling energy and fuel prices account for majority of slumpAnalysts expect UK inflation to approach zero over the summerJob losses to subdue wage inflation for the medium-termGBP drops further on lower-than-forecast CPI London, 20 May 2020 (LS NEWS) – The UK’s main rate of inflation plunged to its lowest level in nearly four years on cheaper fuel and energy… Continued

Pound shows weakness against most cross rates

Pound breaks down with support distant - GBPUSDEuro-Pound breaks up - EURGBPElsewhere Forex markets stay fairly quiet Continued

Forex Brokers in your location