Fall of April month GDP is the biggest UK saw ever. It is more than 3 times larger than last month and almost ten times larger than the pre-COVID-19 fall. The economy fell around 25% in April compared to February. Virtually all areas of the economy were hit drastically.

GDP fell by 20.4%. The services sector fell by 9.9%, production by 9.5% and construction by 18.2%. Education fell by 18.8% as a result of school closures during March and April. Food and beverage service fell by 38.8% as a result of the closure of bars and restaurants throughout March and April. Wholesale and retail trade and repair of motor vehicles and motorcycles fell by 41.6%. As a reduction in new car registrations. Health services fell by 11.4% as a result of reduced activity in elective operations and fewer accident and emergency visits.

April 2020 has experienced sharper falls than March as the negative impacts of social distancing and “lockdown” have led to a significant fall in consumer demand and business and factory closures, as well as supply chain disruptions.

Corona virus has hit Britain hard, and criticism is mounting without the government handling the crisis. The world’s second-largest death toll and a senior consultant – Dominic Cummings – breaks the rules, not helping the public to believe its role. The resulting gradual reopening is already a headache. Also the UK China tension and the possibility of the second wave of the corona virus serves to be the concern among the traders.

 GBP/USD 4 Hour Chart:

Support: 1.2540 (S1), 1.2479 (S2), 1.2372 (S3).

Resistance: 1.2708 (R1), 1.2815 (R2), 1.2876 (R3).

As a result of these challenges, GDP estimates for April 2020 are subject to more uncertainty than usual which creates a bearish trend for GBP/USD.