Forex forecast for today. GBP/USD reacts to the coronavirus situation
On Tuesday, GBP/USD reached a two-week high of 1.3918, after which it fell by almost a hundred points to the support of 1.3820.
Traders reacted positively to the confirmation by British Prime Minister Boris Johnson of a further easing of quarantine conditions in the country. Johnson confirmed that the lockdown in the UK would be lifted next week, although international travel could not resume until mid-May. The country's high vaccination rates also bolster sentiment around the Pound.
In the future, GBP/USD witnessed a strong intraday reversal, amid the activation of buyers of the US Dollar. Investors are optimistic about the prospects for strong economic growth in the United States. The latest employment report and a strong index of business activity in the service sector continued to support USD. A combination of factors helped offset the decline in US treasury yields, which tend to put pressure on the national currency. Rising confidence in an early Fed rate hike should limit the decline in treasury yields. At the same time, the further actions of the Bank of England look at the moment as unpredictable as possible, and this speaks in favor of increasing the volatility of the British currency in the future.
In the forecast, I assume a decline of GBP/USD to the price value of 1.3750.