The British pound also ended last week with the lowest volatility movement. The reason is similar with the euro currency - Good Friday. The new week is likely to start as well, as many countries around the world, including the UK, will celebrate Easter Monday. Thus, we do not expect any major price changes at the beginning of next week. As for volatility, it continues to slowly decline, which speaks in favor of calming the markets. Unfortunately, the factors that can turn everything upside down remain the same. The number of cases of coronavirus around the world continues to grow, and the economies of most countries continue to contract due to the introduced quarantine measures. In principle, we can even say that the pound/dollar pair has spent the last two weeks in a blatant flat between the levels of 1,2207-1,2480. At the moment, it is just trading near the upper limit of this channel. News in the UK would probably be calm next week. Not a single important report, speech, nor a planned event. Thus, as we have already mentioned in the review of the EUR/USD pair, only macroeconomic statistics from overseas can affect the pair.
Meanwhile, Boris Johnson's condition continues to improve. The prime minister has already been moved from the intensive care unit to a normal room and, according to the latest data, Johnson has started to get back on his feet. However, this is all good news on the topic of coronavirus from the UK. More than 900 people have died in Great Britain over the past 24 hours, for the second consecutive day. The total number of people infected in the UK is almost 80,000, and the number of deaths is near 10,000. At the same time, experts continue to note that the real number of people infected with the virus in Britain could be much higher. The health sector continues to conduct approximately 15,000 tests a day. For example, 70,000 tests are performed daily in Germany.
At the same time, Donald Trump introduced a natural disaster regime in the United States. According to experts, this is the first time in the history of the country. This mode should allow you to prepare and mobilize resources from to the time when they are needed. What could happen next week, even theoretically? There may be new statements from the British or American governments about new economic stimulus measures. However, as we have already found out, there is no direct impact on these actions. There may be unexpected speeches by the top officials of the United States or the United Kingdom, first of all, Trump, who is still the main news-maker in the world, regularly comments on everything that happens. But everything will depend on what the US president says. Until the beginning of the week itself, we would say that the next five trading days will be extremely boring, and the factors that will affect the movement of the pair can be counted on the fingers of one hand. Thus, we still believe that more attention should be paid to technical analysis.
Recommendations for the GBP/USD pair:
The pound/dollar pair continues to trade inside the side channel. We still believe that a rebound may occur from the upper line of the side channel at 1.2480. The MACD indicator has turned down, therefore, we recommend considering trading in a lower position with the target at 1.2200 at the beginning of a new week. It is recommended to buy the British pound in case the level of 1.2480 is confidently overcome with targets at 1.2584 and 1.2630. You should also keep in mind that the pair is already in a flat, and could remain in it at the beginning of the week.
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