29.05.2020 GBP/USD Daily Analysis

29.05.2020 GBP/USD Daily Analysis

The pair is tightly confined within covering range (1.2217- 1.2335) but is pushing hard into the resistance at 1.2335, currently trading at 1.2330, per Commerzbank. There is a support line at 1.2217 and a downtrend at 1.2335, a break out from this range is needed to give direction Above 1.2335 focus can shift to the top of the range at 1.2643/61. Initial resistance lies at 1.2468 the 8th may high. Below 1.2217 lies the 50% retracement of the march to April advance at 1.2030 below which lies the minor psychological 1.200mark. Further down sit the September low at 1.1958 and the March 20 high at 1.1935 U.S. President Donald Trump is set to hold a press conference on China on Friday. The key intrigue is whether the U.S. will choose some mild sanctions like travel bans for certain Chinese officials or impose new tariffs on China. Interestingly, the deterioration of the U.S. – China relations and the prospect of a new phase of the trade war between the two biggest economies do not help the U.S. dollar which has served as a safe haven asset of last resort during the coronavirus crisis. It’s too early to say whether the safe-haven status is shifting from the U.S. dollar to gold, which is gaining ground today. If that’s the case, GBP/USD will get more support in the upcoming trading sessions.