GBP/USD Forecast: Decreased buying interest hints further near-term slides
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UNLOCK OFFERGBP/USD Current price: 1.3936
- Upbeat UK employment-related data provided temporal support to the pound.
- The United Kingdom will publish Mach inflation figures on Wednesday.
- GBP/USD retreated sharply from around 1.4000, further declines likely below 1.3880.
The GBP/USD pair extended its rally to 1.4008 but was unable to hold on to gains and fell to 1.3925 on the back of a dismal market’s mood. UK employment-related data gave a temporal boost to the pound at the beginning of the European session, as the March Claimant Count Change came in at 10.1K, much better than the expected 24.5K. The ILO unemployment rate for the three months to February printed at 4.9%, improving from 5% in the previous month and beating the expected 5.1%.
On Tuesday, the UK will publish March inflation-related figures. The Consumer Price Index is foreseen at 0.8% YoY, while the core reading is expected at 1.1%, up from the previous 0.9%. On the other hand, producer prices are expected to have contracted in the same month.
GBP/USD short-term technical outlook
The GBP/USD pair fell after advancing for six days in-a-row, correcting extreme readings in the near-term. Chances of continued decline are still limited, at least as long as the pair holds above the 1.3900 price zone. Still, a steeper decline seems more likely on a break below 1.3880, where in the 4-hour chart, a bullish 20 SMA provides dynamic support. Technical indicators head firmly lower but remain well above their midlines, anyway indicating decreased buying interest.
Support levels: 1.3880 1.3835 1.3790
Resistance levels: 1.3970 1.4020 1.4065
GBP/USD Current price: 1.3936
- Upbeat UK employment-related data provided temporal support to the pound.
- The United Kingdom will publish Mach inflation figures on Wednesday.
- GBP/USD retreated sharply from around 1.4000, further declines likely below 1.3880.
The GBP/USD pair extended its rally to 1.4008 but was unable to hold on to gains and fell to 1.3925 on the back of a dismal market’s mood. UK employment-related data gave a temporal boost to the pound at the beginning of the European session, as the March Claimant Count Change came in at 10.1K, much better than the expected 24.5K. The ILO unemployment rate for the three months to February printed at 4.9%, improving from 5% in the previous month and beating the expected 5.1%.
On Tuesday, the UK will publish March inflation-related figures. The Consumer Price Index is foreseen at 0.8% YoY, while the core reading is expected at 1.1%, up from the previous 0.9%. On the other hand, producer prices are expected to have contracted in the same month.
GBP/USD short-term technical outlook
The GBP/USD pair fell after advancing for six days in-a-row, correcting extreme readings in the near-term. Chances of continued decline are still limited, at least as long as the pair holds above the 1.3900 price zone. Still, a steeper decline seems more likely on a break below 1.3880, where in the 4-hour chart, a bullish 20 SMA provides dynamic support. Technical indicators head firmly lower but remain well above their midlines, anyway indicating decreased buying interest.
Support levels: 1.3880 1.3835 1.3790
Resistance levels: 1.3970 1.4020 1.4065
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