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Today’s pair for our free forex signals is GBP/USD and we have the entry, stop and take profit levels for you to make the trade. But before we get to that, what are the near-term factors influencing GBPUSD price?

You won’t be surprised to hear that it is still all about Covid. Although today the news is more upbeat, if the latest announcements from the UK government are to be taken at face value. On 19 July all Covid restrictions will be lifted, including all mask mandates and social-distancing measures.

UK to lift all Covid restrictions on 19 July – risks ahead?

The government’s move means the full reopening of the hospitality and entertainments industry will follow and the wider economy. Lifting the public health measures is proceeding on the assumption that the vaccine rollout has broken the link between infection and hospitalisation and serious illness.

But only 50.6% of the whole UK population has been vaccinated, although that rises to two thirds of the adult population. That leaves 25 million people who have not been vaccinated, and on top of that the rate of vaccination has fallen significantly over the past couple of weeks.

So although forex traders may be buying cable in the expectation that the UK has seen the back of the pandemic, there are risks in taking such a stance. But for now the gamble is assumed to be a good one to take, with isolation measures for school children also to be lifted in August.

UK PMI shows rebound strengthening, FOMC minutes up Wednesday

The UK economy is already looking in good shape, with today’s Markit construction PMI data reading of 66.3 comfortably beating the consensus estimate of 63.8, and up from   64.2 last month.

In the US, market participants await the FOMC minutes which will be released on Wednesday and keenly scouring the language being used by the central bankers for shifts in emphasis regarding inflation expectations and the response of policy makers.

And as far as inflation concerns go, there will be worries about the continuing ascent of the oil price.

GBPUSD touched a low today’s at 138.38 after trading as high as 138.97 and is currently priced at 138.41.

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Free forex signals – Buy GBPUSD

free forex signals gbpusd forecast

Instrument: GBP/USD

Order: BUY STOP

Entry price: 1.3900

Stop Loss: 1.3813

TP1: 1.4030

Recommended Risk: 1%
Risk / Reward Ratio: 1:1.5

Signal validity period: Good until cancelled

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