GBP/USD Hot Forecast for 6 April, 2021
- A goodish pickup in the USD demand prompted some fresh selling around GBP/USD on Tuesday.
- The upbeat US economic outlook, a softer risk tone drove some haven flows towards the USD.
- Retreating US bond yields did little to cap the USD amid expectations for an earlier Fed rate hike.
GBP/USD is trading at around 1.3850, down from the highs around 1.39, triggered after UK PM Johnson announced the next stage of the reopening is going through next week. The pound is shrugging off some demand for the dollar.
The pair witnessed a dramatic intraday turnaround on Tuesday and dropped nearly 100 pips from the 1.3920 region, or over two-week tops amid the emergence of some fresh buying around the US dollar. Investors remained optimistic about the prospects for a relatively strong US economic growth amid the impressive pave of coronavirus vaccinations.
Support awaits 1.3820, the daily low. It is followed by 1.3810, which was a cushion last week, followed by 1.3780 and 1.3745.
Resistance is only at 1.3920, the daily high, followed by 1.3960 and finally by 1.40 – a psychologically significant barrier.
The material has been provided by InstaForex Company – www.instaforex.com