GBP/USD Forecast: Near-term advances in the docket

GBP/USD Current price: 1.3831

• UK financial markets will remain closed amid Easter Monday.
• The kingdom reported that more than 5 million people got two shots of the covid vaccine.
• GBP/USD is neutral-to-bearish in the long term but could advance in the next sessions.

The GBP/USD pair peaked at 1.1852 on Friday, a weekly high, confined to a tight range but holding on to gains as the day came to an end. UK markets were closed on Friday and will continue down at the beginning of the week due to the Easter holidays. As usual, the pound showed resilience to positive US data, with the greenback incapable of taking advantage of its rival despite an upbeat US Nonfarm Payroll report.

Meanwhile, the UK moves slowly into reopening the economy as the coronavirus vaccination campaign ramps up. Over the weekend, the country reported that more than 5 million people received their second dose of a vaccine, which means roughly 10% of the population is now protected.

GBP/USD short-term technical outlook

The GBP/USD pair is neutral-to-bearish according to the daily chart, capped by a directionless 20 SMA. The pair develops above bullish 100 and 200 SMA, but technical indicators remain within negative levels, lacking directional strength, indicating the absence of buying interest. In the 4-hour chart, the pair is battling with a flat 100 SMA while developing above a mildly bullish 20 SMA. The Momentum indicator bounced just modestly from around its midline while the RSI indicator hovers around 58, suggesting a near-term recovery without confirming it.

Support levels: 1.3810 1.3765 1.3720  

Resistance levels: 1.3850 1.3895 1.3940

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