GBP / USD Current Price: 1.2277
- The pound’s resilience to the dollar’s demand began to wane on Friday.
- British PMI Markit Services plunged to 34.5 in March, worse than previously estimated.
- GBP / USD neutral to bearish short term, sellers have rallied around 1.2300.
GBP / USD ended the week with losses around 1.2270, although it was held at the upper end of its previous weekly range. The pair fell to 1.2204 on Friday amid the recovery in demand for the dollar, while satisfying buyers around the level as the pound remains resilient. On Friday, Markit released the final version of the PMI UK March Services, which has been revised down to 34.5 from a preliminary estimate of 35.7. Earlier this week, Markit will release the March construction PMI for the kingdom, previously at 52.6.
The British pound may well abandon the British reality in the coming days. The number of deaths in the kingdom is doubling every day, with a health system already weak before the coronavirus pandemic. The government’s approach to collective immunity before moving on to foreclosure will have detrimental consequences and may force the authorities to take tougher measures.
GBP / USD short-term technical outlook
GBP / USD ended the week just below the 50% retracement of its last daily decline, after meeting sellers throughout the week just before the 61.8% retracement of the same decline. In the daily chart, the pair barely remains above a bearish 20 SMA, while technical indicators have lost their upward strength after reaching their midline. In the short term, and according to the 4-hour chart, the pair is neutral to bearish, trading below its 20 SMA, while technical indicators are hovering at negative levels, with no clear directional force.
Support levels: 1.2245 1.2200 1.2160
Resistance levels: 1.2305 1.2350 1.2390
View live graph for GBP / USD