GBP/USD Is Neutral-To-Bullish Could Approach The Critical 1.4000 Threshold

GBP/USD Current price: 1.3852

• UK Prime Minister Boris Johnson announced all restrictions would be lifted on July 19.
• Markit published the final version of the UK June Services PMI, which printed at 62.4.
• GBP/USD is neutral-to-bullish could approach the critical 1.4000 threshold.

The GBP/USD pair advanced to 1.3861 in a slow start to the week, trading nearby as the day comes to an end. The pound found support on comments from UK Prime Minister Boris Johnson,  who announced all restrictive measures would be lifted on July 19, including the use of masks and social distancing rules. He also noted that people will no longer be instructed to work from home, despite surging coronavirus cases. A final decision will be made on July 12.

Data wise, Markit published the final version of the UK June Services PMI, which printed at 62.4, better than the 61.7 expected. On Wednesday, the focus will be on the June Construction PMI, foreseen at 63.5 from 64.2 previously.

GBP/USD Short-Term Technical Outlook

The GBP/USD pair has posted a modest intraday recovery, which falls short of anticipating further gains ahead. The near-term picture has turned neutral due to the limited intraday range, but, in the 4-hour chart, technical indicators hold on to positive levels as the price develops above a flat 20 SMA, all of which suggest decreasing selling interest. The longer moving averages head south above the current level, with a bearish 100 SMA providing dynamic resistance at around 1.3930.

Support levels: 1.3810 1.3780 1.3730

Resistance levels: 1.3890 1.3930 1.3985

Image Sourced from Pixabay