GBPUSD 8 APRIL 2020 UPDATE #2

8 April 2020

GBPUSD ANALYSIS

BY

Michael Brunette

Senior Fundamental Analyst

Refering back to the post on 6 April, Cable is holding true to its resistance trendline as news of Borris Johnson is stil uncertain and there is a level of scepticism on whether the pound can break free from its stil currently 4 year low, economic data is currently being overshadowed by news of the Covid-19 virus and whether the interim replacement for the Prime Minister will be able to ease the unrest caused by the virus. 

If it holds the trendline, further movement down could confirm that the Pound is not yet ready or able to break upwards, and it could find support around the

1.22520 handle. If however it breaks the trend and moves above the 1.23680 resistance it could show a slow recovery to the upside as more buyers would be interested to enter at the current price if it shows any sign of reversing and sellers will hold back to enter the market at the higher price after a short recovery stint. I do however believe it will only be a temporary relief and the pound could see more downward pressure. The RSI is currently buyer biased and should it break through the resistance, an overbought situation would be seen as favourable and inevitable to further short the pound.

(The information provided is purely speculative and we do not accept any gains or losses that may result from our analysis)