GBPUSD has become quite non-volatile and impulsive after bouncing from 1.2200 area. GBPUSD bullish trend may sustain further as England economy is recovering from the COVID-19 lockdown. Can GBPUSD recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s GBPUSD Technical Analysis.
June 11, 2020, | AtoZ Markets – GBPUSD is currently trading around 1.2680 area and trying to push lower. After an extended period of bullish momentum, GBPUSD may retrace down toward the dynamic level. As per the current scenario, GBPUSD bears are quite strong may retrace further in the coming days.
GBPUSD Bullish Trend May Continue as the U.S. Economy Downfall Is in Unrest
Andrew Bailey, Governor of Bank of England, said he got a sign of an economic recovery in England as the lockdown limitations are easing. However, there was still probably to be long term damages. He also added, “If there is any such thing as a normal recession … this one will be different. There will be elements of a faster recovery because the first stage of the recovery is literally lifting restrictions and allowing people to go out. And we see evidence of elements of that recovery starts.”
On the other hand, Jerome Powell, Chair of Federal Reserve said on Wednesday, the coronavirus pandemic’s collision is staggering the discriminative attitude towards blacks and other minorities. The large volume of U.S. job losses has fallen most greatly on them.
Powell said, “I want to acknowledge the tragic events that have again put a spotlight on pain of racial injustice in this country. He also added, “Everyone, deserves the opportunity to participate fully in our society and our economy.” The ongoing unrest has impacted the U.S. economy so badly, which affect we can see on the labour market. “We had the first tight labour market effectively in a quarter-century,” Jerome Powell said.
GBPUSD May Climb Further in the Process
According to the daily chart, GBPUSD is currently residing near 1.2680 area and trying to decline, after an impulsive bullish trend. As per the current price action, if the price reaches 1.2580 area and bounces higher, the bulls may recover higher towards 1.2950 area. Alternatively, if the price breaks below 1.2580 area with a daily bearish candle close, the bears may push the price down towards the uptrend line, which is around 1.2430 area.
Image: GBPUSD Daily Chart
In addition, the dynamic level of 20 EMA is currently residing below the price. It may pull the price back to the Mean. Besides, the MACD lines are residing above the 0.00 level and gradually moving upside. It indicates that bulls are still in the market may sustain the bullish trend in the coming days.
To conclude, GBPUSD bulls have gained around 600 pips in just one week because of the England government’s lockdowns easing and the unrest of the U.S. economy, which made GBP strong. As a result, GBPUSD bullish trend may sustain further in the coming days.