GBP/USD Plays Around 1.2300 while Set on UK Prime Minister’s Speech

  • GBP/USD seesaws at 1.2300 while moving to London’s open on Tuesday. The pair plunged the lowest since May 28 yesterday after investors surged to the greenback with Brexit invalidations.

    However, the quote soared ahead of Boris Johnson, the UK Prime Minister’s forecasted $6.15 billion construction plan. Moreover, the second benchmark of the UK’s GDP for Q1 2020, and the Fed Chair’s declaration are further catalysts for investors to monitor.

    The 6-week-long mediations for the UK began in Brussels yesterday and will proceed for the entire week. On the first day of negotiation, Britain stressed that they want an arrangement in a month. It merits referencing that the UK revealed an update saying that French fishers remain prepared to oppose the Brexit bargain if it prevents them from fishing in the waters of Britain.

    On the other hand, somewhere else nearby lockdown in Leicester restores fears of the COVID-19 second wave.

    Price Outlook

    The market sentiment remains somewhat positive regardless of China’s haste to acquire power over Hong Kong and the pandemic outbreak.

    The 1st quarter for UK GDP in 2020 is expected to stay unaltered around – 2.0%, which will be the first to engage the pair traders. What follows is the UK PM Johnson’s “build, build, build” approach. Highly likely to encourage the pair traders as well will be US Consumer Confidence.

    With several factors influencing the GBPUSD, the pair is probably going to stay liquid throughout the day. However, the bears are still expected with a downtrend line, unless anything positive arises from Brexit, which is less anticipated.

    If the pair bounces past a 50-day SMA level of 1.2415, it is less expected to hit May’s month low close to 1.2075.

     

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