Business Secretary Alok Sharma’s speech on Wednesday was optimist. He stated that the number of infections has reduced and the R rate is under control. Lockdown easing was highlighted with allowing car showrooms and outdoor markets to open by June 1, retail outlets to operate from June 15th by following COVID-secure guidelines.

Alok Sharma speech ” I am leading 5 new ‘recovery roundtables’ bringing together businesses, business representative groups, and leading academics.” and ” We will work, shoulder to shoulder, with our businesses as we get ready for our economic fight back.” boosted confidence among the investors.

UK Prime Minister Boris Johnson is expected to announce a few more ways to ease the impact of the pandemic on economic activity. In addition to updates on how the economy will reopen, markets will listen to what Tory leaders say about China and Brexit.

“Boris Johnson’s government is drawing up a strategy to reduce the UK’s reliance on China for key imported goods.” “Those working on the project, which is overseen by foreign secretary Dominic Raab, stressed it was primarily about strengthening the country’s trade links in the wake of corona virus but would also lead to the production of some critical goods being brought back to the UK after the pandemic exposed the UK’s reliance on imports,” FT reported. But its impact on GBP’s strength is negligible.

 GBPUSD 4 Hour Chart:

Support:  1.2645 (S1), 1.2563 (S2), 1.2507 (S3).

Resistance: 1.2782 (R1), 1.2837 (R2), 1.2919 (R3).

Amid all these catalysts we expect a bullish trend for GBP/USD As the Federal Reserve has a meeting today, Next mover setter for the market would depend on Jerome Powell and his report.