GBPUSD WEEKLY ANALYSIS – Price Action Re-test Upward Trend-line

GBPUSD WEEKLY ANALYSIS – Price Action Re-test Upward
Trend-line  

Following the previous report on GBP/USD, price action previously
rebounded from the upward trend-line to re-test its 61.8 Fibonacci level near
1.2600, only to be rejected once again back towards the trend-line. Price
action now struggles between its 50.0 Fibonacci near 1.2400 and the trend-line,
only to wait for further confirmation for its near term trend.  

The pair continues to be trading below its 20EMA and 50EMA while
MACD still biases towards bearish and forming a death cross signal. Further
downside potential will require the breakout below the trend-line; however, the
38.2 Fibonacci near 1.2200 plays a vital role for a long-term bearish
indication. Failure to break below will suggest the pair to consolidate between
the resistance zone near 1.2600 and the support zone near 1.2400.   

From the fundamental front, the Bank of England latest policy
meeting ended with no changes in its interest rate at a low of 0.10%. However,
the BOE did signal for a possible further stimulus package to support its
economy jeopardized by the pandemic. Meanwhile, previous sell-off pressure came
amid UK Construction PMI plunging to a record low of 8.2 as the sectors are put
to halt while in effort to battle against the COVID-19.  

As the country celebrates its ‘Bank Holiday’, the driver for the
pair today will depend heavily on dollar index movement following the upcoming
jobs report from the US. This month’s job data will most likely bring
significant impact towards the dollar as economists’ forecast the unemployment
rate to hit 16%, the highest level last seen since the Great Depression in
1930.

As the whole world continues to fight against the COVID-19 pandemic,
Regain Capital wishes to remind all readers to constantly wash your hands, keep
social distancing, drink sufficient amount of water and stay safe!