GBP/USD Outlook (20 May 2021)

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GBP/USD Outlook (20 May 2021)

ByJin Dao Tai

 MAY 20, 2021

GBP/USD Outlook (20 May 2021)

Overall, GBP/USD is trending upwards. Recently, GBP/USD bounced down from the key level of 1.42 due to the strengthening of USD as a result of the released hawkish FOMC meeting minutes.

The UK CPI y/y data released yesterday indicated that annual inflation in the UK rose in April as forecasted.

  • CPI y/y (Actual: 1.5%Forecast: 1.5%Previous: 0.7%)
  • Core CPI y/y (Actual: 1.3%Forecast: 1.3%Previous: 1.1%)

Bank of England committee member Cunliffe will be speaking later at 1705 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/USD is testing to break below the key level of 1.41. Its next support zone is at 1.40000 and the next resistance zone is at 1.43500.

Look for short-term selling opportunities of GBP/USD if it breaks below the key level of 1.41.

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