GBP/USD Outlook (07 May 2021)
ByJin Dao Tai
MAY 7, 2021
Overall, GBP/USD is ranging across.
The Bank of England (BoE) held its monetary policy unchanged yesterday during its meeting. Although one member of the committee voted for a cut in government bond purchases, the central bank’s governor highlighted that the BoE has not concluded on reducing quantitative easing. The central bank also expects growth to recover to pre-COVID levels this year while inflation is expected to rise above 2% temporarily towards the end of 2021 due to rising energy prices.
The UK Construction PMI data (Forecast: 62.0, Previous: 61.7) will be released later at 1630 (SGT).
Currently, GBP/USD is testing to break above the key level of 1.39. Its next support zone is at 1.38000 and the next resistance zone is at 1.40000.
If GBP/USD breaks above the key level of 1.39, look for short-term buying opportunities up until the release of the U.S. Nonfarm Payrolls employment report later at 2030 (SGT).
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