- GBP/USD is trading calmly today.
- Covid can keep pressing the Pound.
- BOE member’s speech can provide further fresh impetus to the Pound.
The GBP/USD price traded quite calmly on Friday, and the bulls easily held back all the sellers’ attacks, preparing a new offensive move at the beginning of the new week.
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The spread of coronavirus cases in the UK is keeping the Pound under pressure. However, the government is still optimistic about avoiding any future lockdown and continuing to operate normally.
Today we do not have important fundamental statistics on the UK. However, a speech by the member of the ILC of the Bank of England Gertyan Vlige is scheduled, who can tell market participants how he envisions the future of central bank monetary policy, which will lead to a surge in the Pound’s volatility. In addition, statements on the need to curtail the bond purchase program will create a new wave of rising for the pair.
GBP/USD price technical analysis: What buyers are looking for?
Buyers now focus on resistance at 1.3769. Breaking beyond will open the way to new local lows. Breakout and consolidation at this level with its reverse test from top to bottom will push the Pound to new buying and to rise to the area: 1.3819 and 1.3859.
A further target will be resistance at 1.3896, where I recommend taking profits. In case of a decline in the pair after the statements of the representative of the Bank of England, the attention of the bulls will also remain on the protection of support at 1.3722. In the formation of a false breakout, there will be a signal to open new long positions to continue the upward trend.
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If there is no active action on the part of buyers in the 1.3722 area, it is best to postpone long positions until the 1.3672 low is renewed. But even there, you can count on buying only if a false breakout is formed.
Therefore, I recommend buying GBP/USD immediately on a rebound only from a low of 1.3636, or even lower around 1.3592 with the aim of an upward correction of 25-30 pips within the day.
Resistance levels
1.3924
1.3854
1.3806
Support levels
1.3701
1.3678
1.3649
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Saqib Iqbal
