Forex Market Analysis: GBP/USD pair recovery accelerates on the far side 1.2400
1.GBP/USD currency pair rebounds from 1.2266 lows accelerates on the far side 1.2400
2.The pound extends recovery supported by a risk-on market mood and hits session highs at 1.2465.
3.Longer-term, the currency pair remains trapped between 1.2235 and 1.2645.
Sterling’s recovery from 1.2266 low on Thursday has gathered pace with the GBP/USD pair jumping past the 1.2400 level. The currency pair is return lost ground on Friday, reaching intra-day highs at 1.2450 space favored by a risk-on market mood and possibly by squaring United States dollar long positions earlier than the united kingdom market closing.
The pound picks informed lockdown restriction hopes
The pound is bouncing informed Friday once having lost nearly earlier in the week, on the rear of the negative outlook of the united kingdom, hit laborious by the COVID-19 pandemic and Brexit uncertainty.
The market, however, is welcoming with optimism the easing of lockdown restrictions, on hopes that world economic recovery from the coronavirus closing can be quicker than expected. moreover, April’s the United States Non-Farm Payrolls report, which has shown a less than expected job destruction, has contributed to the positive market mood.
GBP/USD pair trapped among a variety between 1.2235 and 1.2645
From a longer-term perspective, the currency pair remains forex trading sideways between 1.2235 and 1.2645 and, in line with the FX Strategists at UOB cluster it’s probably to stay in this area for ensuing weeks; ‘The break of the ‘strong support’ level at 1.2370 on Wed (06 May) suggests that last week’s 1.2644 high may be a short-term high. That said, downward momentum is lackluster and it’s too early to expect a sustained decline. From here, GBP is additional probably to consolidate and trade between 1.2280 and 1.2500 for an amount.”