Our main scenario still assumes a decline in GBP/USD. The signal for the resumption of short positions may be a breakdown of today's minimum and the local support level of 1.2865 (the lower limit of the descending channel on the weekly chart). Breakdown of this support level will send the pair towards local lows 1.2685, 1.2400.
“More distant GBP/USD downside targets are located at local support levels 1.2250, 1.2085, 1.2000 (the low in the GBP/USD downside wave that started in July 2014 near 1.7200).”
Today, market participants who follow the pound quotes will pay attention to the speech (at 14:30 GMT) of the Governor of the Bank of England, Andrew Bailey. Financial market participants are waiting for clarification of the situation from him regarding the further policy of the country's central bank in the current conditions of a sharp deterioration in the geopolitical situation in Europe and economic indicators in the UK. Probably, Andrew Bailey will also give explanations regarding the decision taken by the Bank of England a month ago to raise the interest rate (the next meeting of the Bank of England is scheduled for May 05) and will touch upon the state and prospects of the British economy after Brexit and the partial lifting of quarantine restrictions due to the coronavirus. If Bailey does not touch on monetary policy issues, then the reaction to his speech will be weak.
Support levels: 1.2865, 1.2800, 1.2700, 1.2685, 1.2400, 1.2250, 1.2085, 1.2000
Resistance levels: 1.3000 1.3038 1.3090 1.3124 1.3175 1.3210 1.3297 1.3370 1.3420 1.3580 1.3640 1.3700 1.3745 1.3832 1.30.40
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Source: InstaForex
