- GBP / USD has recovered above its 21- and 50-day moving averages, which sit just below 1.3850.
- The pair is now back at 1.3900 with the GBP one of the best performing G10 currencies on the day.
- Reopening optimism is helping the British pound, and the prime minister is expected to announce that the country will ease restrictions again on April 12.
The GBP/USD it has returned above resistance in the form of its 21 and 50 day moving averages, both of which sit just below 1.3850. The pair has now managed to rally back to the psychologically important 1.3900 level and long-term sterling bulls are expecting an eventual move back towards resistance around the 1.4000 region. Currently, the pair is trading with gains of more than 0.6% or just under 90 pips.
Performance of the day
The main event of the day in the UK will be a Downing Street briefing with British Prime Minister Boris Johnson, Chief Scientific Adviser Patrick Vallance and England’s Chief Medical Officer Chris Whitty at 17:00 BST. At the press conference, the prime minister is expected to describe whether or not the country can advance to stage two of the government’s “road map” to reopen the economy. Johnson is also expected to introduce a new traffic light system for overseas travel and may outline some details about the potential use of Covid-19 certificates / passports as a means of accessing services or events nationwide.
When it comes to the British pound, the decision to advance to stage two of the roadmap towards reopening is the most important decision. If the UK moves into stage two on April 12 as planned, this will be a huge boost to the economy as nonessential retail will be allowed to reopen, hospitality venues will be allowed to start serving customers. customers outdoors again, and for the likes of gyms, spas, barbers, hair salons, theme parks, zoos, libraries and museums to be able to reopen their doors. Given the steep drop in Covid-19 deaths, hospitalizations and infections in recent weeks, most expect Johnson to allow the country to advance to the next stage of reopening.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
