In the United Kingdom, the number of new coronavirus cases continues to climb.
The UK statistics disappointed, with housing data falling short of market expectations.
The GBP/USD pair is still stuck around 1.3800, with limited positive potential.
The GBP/USD pair oscillated between gains and losses during the day, but concluded the day little altered near the 1.3800 level. During the European session, the pair reached a high of 1.3841, but during US trading hours, it succumbed to the resurgent dollar’s demand. The dollar rose in value as demand for US bonds increased, lowering yields.
Meanwhile, UK statistics disappointed, as the country released the June Halifax Price Index, which fell by 0.5 percent MoM, falling short of market forecasts. In addition, the United Kingdom reported over 32K new coronavirus infections on July 19, the largest one-day spike since late January, despite no indications that restrictive measures will be maintained after July 19. The UK calendar will be light on Thursday, since the RICS Housing Price Balance for June will be released.
GBP/USD Technical Outlook in the Short Term
In the short term, the GBP/USD pair is neutral to bearish, with another step south possibly possible. The gain was restricted by a modestly bullish 20 SMA on the 4-hour chart, but the longer ones maintained their negative slopes above it. Within negative levels, technical indicators have no direction. Once above the daily high, the pair could gain some ground, although sellers are waiting near the 1.3900 mark. The key support level is 1.3730, which corresponds to the low hit last Friday.
Levels of support: 1.3780; 1.3730; 1.3680; 1.3780; 1.3730; 1.3680; 1.
1.3890 1.3930 1.3840 1.3890 1.3930 1.3840 1.3890 1.3930 1.3840 1.3890 1.
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