Forex. Trading forecast and signal for GBP/USD for today, April 27
On Monday, Pound GBP strengthened against the Dollar to the price value of 1.3890.
The demand for risky assets in the market remains, so the uptrend of the British currency can hardly be considered complete. According to Bank of America, the pound could strengthen further this year as the global economy recovers from the coronavirus, but is likely to weaken in 2022 when market attention returns to Brexit. Although investors are not currently expressing concerns about UK independence, the bank believes that the consequences will begin to affect the economy, expecting a decline in productivity growth and business investment, as well as a lower level of trend growth. Bank of America expects that the Brexit deal will reduce the UK's economic growth by 5-7. 5% in the long term. The first quarter of next year may well represent the high point of the trend for Pound.
According to the consensus forecast, much of the good news about the improving performance of the UK recovery is already embedded in the price. Short-term speculators are likely to continue to bet on the strengthening of the pound, given the strengthening economic prospects of the country. Data from the Commodity Futures Trading Commission showed a moderate decline in net long positions on Pound over the past week, but sterling retained its status as the most overbought currency among the G10 countries. The high number of positions to buy the British currency will continue due to optimistic expectations of the country's economic recovery, which was helped by rapid vaccination and weaker measures to contain the virus.
Forex. Trading signal for GBP/USD
The forecast assumes a decline in Pound/Dollar currency pair to the levels of 1.3870, 1.3850 and 1.3825.