Shares
 
FAQs

Visit our FAQ page to find the answers to the most commonly asked questions, including how to create an account, explaining ETFs, and providing useful links, forms, and tables.

FAQs
Shares

Start investing in Australian shares the smart way. Discover ThinkTrader today.

Open Shares Account
Learn To Trade
 
Indicators & Chart Patterns

Deepen your knowledge of technical analysis indicators and hone your skills as a trader.

Find your detailed guides here
Trading Glossary

From beginners to experts, all traders need to know a wide range of technical terms. Let us be your guide.

Learn more
Knowledge Base

No matter your experience level, download our free trading guides and develop your skills.

Learn more
Learn To Trade

Trade smarter: boost your skills with our training resources.

Create a live account
Market Analysis
 
Market News

All the latest market news, with regular insights and analysis from our in-house experts

Learn more
Economic Calendar

Make sure you are ahead of every market move with our constantly updated economic calendar.

Learn more
Technical Analysis

Harness past market data to forecast price direction and anticipate market moves.

Learn more
Live Webinars

Boost your investing knowledge with our live, interactive webinars delivered by industry experts.

Register now
Special Reports

Engaging, in-depth macroeconomic analysis and expert educational content from our in-house analysts

Learn more
Market Analysis

Harness the market intelligence you need to build your trading strategies.

Create a live account
Partnership
 
Money Manager

Increase your income and get compensated for your trading knowledge with ThinkInvest, putting you in control.

Learn more
Introducing Broker

ThinkMarkets ensures high levels of client satisfaction with high client retention and conversion rates.

Learn more
White Label

We supply everything you need to create your own brand in the Forex industry.

Learn more
Regional Representatives

Partner with ThinkMarkets today to access full consulting services, promotional materials and your own budgets.

Learn more
Partnership

Plug into the next-gen platforms and the trades your clients want.

 
About ThinkMarkets
 
Sponsorships

Check out our sponsorships with global institutions and athletes, built on shared values of excellence.

Learn more
About Us

Find out more about ThinkMarkets, an established, multi-award winning global broker you can trust.

Learn more
Negative Balance Protection

Trade with peace of mind. Never lose more than what you deposited, no matter what the market conditions.

Learn more
Careers

Discover a range of rewarding career possibilities across the globe

Apply now
ThinkMarkets News

Keep up to date with our latest company news and announcements

Learn more
Trading Infrastructure

When it comes to the speed we execute your trades, no expense is spared. Find out more.

Learn more
Contact Us

Our multilingual support team is here for you 24/7.

Learn more
About ThinkMarkets

Global presence, local expertise - find out what sets us apart.

Create a live account
Log in Create account

GBP/USD in focus as UK prepares for lockdown easing

Fawad Razaqzada Fawad Razaqzada 22/02/2021
GBP/USD in focus as UK prepares for lockdown easing GBP/USD in focus as UK prepares for lockdown easing
GBP/USD in focus as UK prepares for lockdown easing Fawad Razaqzada
The pound remains on the front foot ahead of Boris Johnson’s highly-anticipated speech to unveil 'cautious' plan to lift England's lockdown. Much of the details have already been leaked ahead of a news conference at 19:00 GMT. So, the announcement itself is unlikely to offer any fresh impetus for the pound, unless there are some surprises in store.

The pound has been surging higher on expectations of strong demand once lockdowns end. Such has been the strength of the rally that not even a badly disappointed UK retail sales report could knock the GBP/USD off its perch.  This is because the markets are always forward-looking and in the case of the pound any softness in data during this lockdown continue to be shrugged off. The vaccine rollout in the UK has been quite successful so far, raising hopes that lockdowns will end for good soon, which, together with ongoing government support and favourable monetary conditions, will fuel a sharp economic recovery. And although the Bank of England has floated the idea of negative interest rates, it will unlikely go down this route given the potential for a sharp economic recovery that is likely to boost inflation towards the Bank’s 2% target. Let’s not forget that the UK also avoided a no-deal Brexit at the back end of last year, which is one of the key reasons the cable got to $1.40, a level where it was trading around before that 2016 referendum.

With the cable testing the top of its bullish channel, a bit of profit-taking is warranted at these levels. However, I reckon the pound is likely to go further higher over time – possibly towards the $1.50s in a few months’ time, although this will depend to a great extent on how the UK economy will evolve and is subject to the virus situation. What the bulls want to see next is a few days’ of consolidation to allow momentum indicators to work off their overbought conditions, before powering to new highs to the year. Short-term support is seen around 1.4000, followed by 1.3950 and then 1.3900.

GBP/USDSource: ThinkMarkets and TradingView.com
Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.

Related articles:

RDDT soars: here are the levels to watch in c...

By Alejandro Zambrano

26/03/2024

Weekly Index Dividends

By ThinkMarkets

25/03/2024

Reddit Launches IPO: Can the Struggling Compa...

By Alejandro Zambrano

21/03/2024

Weekly Index Dividends

By ThinkMarkets

18/03/2024

Riding the rollercoaster: Bitcoin's record su...

By Alejandro Zambrano

12/03/2024

Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Back to top