On Friday news conference Trump did not bear a new Tariff for China and this became s a Major relief For Global Markets. At his speech, the US President said that the US would withdraw from the WHO and that the special status enjoyed by Hong Kong is to be reversed as all tariffs and sanctions that apply for Mainland China are to apply for Hong Kong as well And Investors are feared that there would be another round of the trade war by the U.S between the two biggest economies, at the same time where the world economy tries to recover from Corona Disease. it should be noted that investors seemed to concentrate more on the reopening of the economy and the prospect of recovery. USD gets weaker even with one more reason as a policeman killed George Floyd a person. This affected the market sentiment as the market reacted to the violence spreading.

On the other hand, UK Chancellor Rishi Sunak is likely to provide yet another aid to British workers and forecast the budget till July; In addition, the BBC cited Tory government announcements to facilitate virus-led lock-up operations after managing to exceed 200,000 target per day for virus testing by the end of May. According to the report, “The primary schools will reopen on Monday in the UK and people can meet in groups of six. Vulnerable people in England and Wales can go out for the first time in months”. Today’s Manufacturing PMI’s from the UK and US will offer Medium Term Positive Trend for Britain Pound. 

 GBP/USD 4 Hours Chart:

Support: 1.2293 (S1), 1.2241 (S2), 1.2190 (S3).

Resistance:  1.2397 (R1), 1.24467 (R2), 1.2500 (R3).

The weakening of US Dollars and improvement in the GBP due to the positive sentiments in the Uk has given GBP/USD a buy trend and we expect a bullish market for the pair.