Forex. Trading forecast and signal for GBP/USD for today, April 28
On Tuesday, Pound/Dollar forex pair rose by almost 60 points from the lows of the European session and reached the price value of 1.3915.
Investors are convinced that the Fed will keep interest rates near zero for an extended period. This continued to act as a key barrier for the Dollar and limited the attempt to decline to multi-week lows reached on Monday. In addition, the main upward sentiment in the financial markets further undermined the demand for the safe-haven Dollar.
Pound holds on forex its position against Dollar and retains the potential for further growth, if the UK government does not receive further accusations of incompetence. April was quite a difficult month for the Pound, as the currency suffered first from concerns about the vaccination program, and now from the degree of political uncertainty. British Prime Minister Boris Johnson is facing a number of charges. The headlines are dominated by reports that Johnson will not approve a third national isolation, regardless of the epidemiological situation. The Prime Minister categorically denies such a statement.
According to analysts at Danske Bank, the UK's economic growth will be quite strong in 2021 due to the faster deployment of the vaccine and the removal of high uncertainty about Brexit. The Bank of England will be able to tighten monetary policy by the end of the year, when the quantitative easing program expires. However, the final decision will depend on many factors.
Trading signal for GBP/USD
In the forecast, GBP/USD is expected to decline to the support levels of 1.3900, 1.3875 and 1.3850.