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May, 26 - GBP/USD stays on the bids for the second consecutive day

GBP/USD takes the bids near 1.2215, up 0.20% on a day, while heading into the London open on Tuesday.

26052020gbpusdWith the market’s risk-on sentiment weighing over the US dollar, buyers keep the reins as the UK and the US return to trading after a long weekend.

Contributing to the US dollar weakness could be the market’s optimism backed by the global policymakers’ efforts to ease the coronavirus (COVID-19) led lockdown restrictions. While the UK PM Boris Johnson announced the opening of all non-essential shops from June 15, not more than 100 people will be able to gather for prayers in Californian churches. Not only the US and the UK, countries in the Middle East and some parts of Asia also showed readiness to restore market activities.

The pair’s current run-up seems to aim for a 50-day SMA level of 1.2275 ahead of targeting 1.2300 mark comprising high of May 19. On the downside, Friday’s low near 1.2160 can restricts the pair’s immediate declines ahead of the monthly bottom surrounding 1.2075.

Lang

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