GBP/USD Seems Poised To Extend Its Corrective Advance In The Near-Term

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GBP/USD Current price: 1.3934

• UK PM Johnson noted that they need to be cautious about easing restrictions.
• The focus is on the Bank of England monetary policy meeting later in the week.
• GBP/USD seems poised to extend its corrective advance in the near-term.

The GBP/USD pair trades near a daily high of 1.3934, recovering from a fresh monthly low of 1.3785. The pound rallied despite comments from UK Prime Minister Boris Johnson, who said that cases of the coronavirus Delta variant are still going up, adding that they need to be cautious on easing restrictions. He added that data is looking good ahead of the July 19 deadline, although noting that traveling will be “difficult.”

The UK published the June Rightmove House Price Index, which was up by 7.5% YoY. On Tuesday, the country will publish May Public Sector Net Borrowing, previously at £30.962 billion. The main event this week will be the Bank of England monetary policy meeting next Thursday.

GBP/USD short-term technical outlook

The GBP/USD pair could extend its advance, according to intraday technical readings, although it’s not yet confirmed. In the 4-hour chart, the pair is above a bearish 20 SMA, while the Momentum indicator advances within neutral levels. The RSI indicator, however, is flat at around 48. Bulls could have better chances once above 1.3960, the immediate resistance level.

Support levels: 1.3890 1.3850 1.3805

Resistance levels: 1.3960 1.4010 1.4060

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.