The GBP/USD pair strengthened on Thursday even though UK growth slowed to 1.9% from 2.1% as expected. The news saw Sterling rise to 1.4407 as investors had been braced for worse news. The details showed the service sector continued to do heavy lifting. The uptick in the index of services and a horribly weak US durable goods data also helped the pair end on a positive note. The pair clocked a high of 1.4407 before trimming gains to close around 1.4357.
The main event today is the US preliminary GDP estimate release. The detailed discussion of the event has been posted here (Macro Scan).
Technicals – Bullish break likely today
Sterling’s rising bottom formation on the hourly chart shown by the rising trend line is likely to make sure the pair chews through offers around 1.44-1.4410 and move towards 1.45 levels.
On the downside, a break below 1.4333 (support on the hourly chart) could send the pair lower to rising trend line support seen at 1.4278.
However, the odds of a bullish break remain high so long as the pair is above the rising trendline.
EUR/USD Analysis: Stuck at falling trend line resistance
The EUR/USD pair rallied for the fourth straight session on Thursday, but failed to take out the falling trend line resistance (red) shown on the daily chart. The pair clocked a high of 1.0967 before ending the day at 1.0939. The spot remains at the mercy of the equity market sentiment ahead of the US GDP release.
Technicals – Eyes 100-DMA
Euro’s four day rally followed by a drop and rebound from 1.0890 (38.2% of 1.1495-1.0517) coupled with a bullish RSI on the daily indicate the currency pair could be heading towards its 100-DMA at 1.0979.
The odds of a bullish break from the falling trend line (red) remain high so long as the pair is above the rising trend line (blue) support seen currently at 1.08.
A break lower would open doors for a re-test of 1.0710 (Jan 5 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.