Pound aims higher – GBPUSD forecast

  • Global financial markets have shifted to more of a “risk on” theme since the start of this week, rejecting the “risk off” phase seen at the beginning of April, last week.
  • This has been in reaction to coronavirus new cases/ deaths showing some signs of slowing down in some parts of Europe (Italy and Germany) and some US States (NY State).
  • This “risk on” phase has seen a broader weakening of the US Dollar.
  • Despite a small GBPUSD sell off and bounce over the past 24 hours (in reaction to PM Boris Johnson being moved to an intensive care unit), the bias is for GBPUSD gains as the US Dollar weakens.

GBPUSD day trade outlook: Risks higher

A Monday rebound above 1.2302 resistance to 1.2327, then a spike lower and another rebound from above key 1.2125 support (from 1.2163) to reject the negativity from Friday’s selloff through 1.2242 support, to resume the positive tone from the latter March surge above key 1.2423, to switch risks back higher into Tuesday.

·      We see an upside bias for 1.2327 and 1.2396; a break above aims for 1.2475/85, maybe towards 1.2528.

·      But below 1.2217 targets 1.2163, which we would look to try to hold. Below targets key 1.2125.

GBPUSD intermediate-term outlook

We see an intermediate-term range as 1.2125 to 1.2624.

  • Upside risks: Above 1.2624 sets an intermediate-term bull trend for 1.3200 and 1.3515.
  • Downside risks: Below 1.2125 sets an intermediate-term bull trend for 1.1639 and 1.1410.

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Your email address will not be published.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