GBPUSD recovers yesterday’s losses after the news that Prime Minister Boris Johnson is in intensive care after his health condition worsened due to coronavirus. UK minister Michael Gove said that any decision on lifting the lockdown, measures may be a bit too soon for the UK to consider.
On the data front, the UK Halifax House Prices came in at 0%, below the forecasts of 0.1% in March, the yearly Halifax House Prices came in at 3% also below the expectations of 3.3% in March.
The Bank of England in a surprising move cut the interest rates from 0.25% to 0.1%. The UK’s central bank also announced the increase of government and corporate bonds holdings by £200 billion.
Download our Q2 Market Global Market Outlook
GBPUSD Enters Death Cross
GBPUSD is 0.45% higher at 1.2287, in a move that halts the correction from two-week highs that started the previous week. The pair managed to rebound today from seven days lows. The technical picture is bearish, and lower levels might be on the cards. Meanwhile, the pair enters death cross as the 50-day moving average crosses below the 200-day moving average giving a strong sell signal.
On the upside, the first resistance for GBPUSD stands at 1.2349 the daily top. The next resistance area would be met at 1.2417 the high from April 3 trading session. A successful break above 1.2417 is likely to open the way for a bigger rally to the next resistance at 1.2678 the high from April 2.
On the flip side, support stands at 1.2165 the daily low. In case of a move below the 1.2165 support level, the GBPUSD price could correct lower towards the 1.2129 level in the near term, the March 27 low. If GBPUSD continues lower, the next support area would be met at 1.1775 the low from March 26.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Nikolas on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.