Forex. Trading forecast for the Pound/Dollar (GBP/USD) for today, April 13
The Pound/Dollar pair recovered more than 50 points from two-month lows and jumped to new daily highs around 1.3740 at the beginning of the next trading week. The decline in US treasury yields has held back the strong dollar's gains, at least for a while. This, in turn, helped the pair to bounce back from the support at the 100-day moving average at 1.3670.
Nevertheless, a combination of factors may deter buyers of the pound from aggressive bids. The British medical regulator has introduced a temporary ban on vaccination for the under-30 age group. Such a development could delay the UK government's plan to restart the economy, and could be a major hurdle for the Pound along with the latest unrest in Northern Ireland. On the other hand, a slight deterioration in global risk appetite and upbeat comments from Fed Chairman Jerome Powell should continue to support demand for the safe-haven Dollar.
The news that one of Iran's nuclear facilities was damaged in a terrorist attack has benefited traditional safe assets, including the US Dollar. The fundamental background is still favorable to sellers, and therefore, the intraday rebound can be attributed solely to some activity to close short positions, which can disappear quite quickly. Any subsequent positive move could still be seen as a selling opportunity for GBP/USD near the 1.3740-1.3750 area, amid the lack of relevant economic data affecting the market, either from the UK or the US.
In the forecast, I assume a reversal and a decline in the GBP/USD to 1.3675.