British Pound

GBP/USD – Skyrockets Past 1.20, Recovery on Hand, 1.2230 Resists

Sterling skyrocketed against the US Dollar after the Bank of England kept its rates policy unchanged. Policymakers were unanimous in their decision. GBP/USD jumped to an overnight and near 10-day high at 1.2228 before easing to settle at 1.2186 currently. The stronger US Dollar saw the British currency plunge to a low of 1.1410 earlier this week.

GBPUSD Hourly Chart - Investing.Com - 27 March 2020
GBPUSD Hourly Chart – Investing.Com – 27 March 2020

GBP/USD has immediate resistance at 1.2230 followed by 1.2280. Immediate support can be found at 1.2130 followed by 1.2060. The strong upward move was a result of the sharp fall as demand for the US Dollar peaked earlier this week. That demand has eased. We can expect Sterling to consolidate its gains. We may see a corrective move lower to close the gap on the GBP/USD sharp up move.

Look to trade a likely 1.1980-1.2240 range today. No strong views here, although the Pound may have found a base. This is not the time to fall in love with any strong view. Get your levels right, be flexible and quick and trade away.

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