GBP/USD analysis: UK employment and inflation data to set the tone this week

Valeria Bednarik FXStreet

GBP/USD Current price: 1.4235

UK inflation seen steady at 2.4% YoY in March.
GBP/USD looking to retest post-Brexit referendum's high at 1.4345.

The Pound soared to 1.4295 against the greenback, the highest for the pair since topping at 1.4345 last January, but trimmed most of its intraday gains ahead of the close, with the GBP/USD pair ending Friday at 1.4235, still up for the week. There was no particular catalyst behind the rally beyond broad dollar's weakness, and the pair triggering stops once surpassing March's high. This past week, positive comments from Brexit Minister Davis helped the UK currency, although the macroeconomic calendar had little to offer. The situation won't be the same these upcoming days, as the kingdom will offer some first-tier figures, including employment data on Tuesday and inflation figures on Wednesday. Core yearly inflation is expected to have remained steady at 2.4% in March. The pair is technically bullish according to the daily chart, having closed around March's high, and well above a bullish 20 DMA, while technical indicators maintain their upward slopes well into positive territory. Shorter term, and according to the 4 hours chart, the positive momentum eased but the pair is far from signaling a downward move, as it continues developing above a bullish 20 SMA, while technical indicators ease within positive territory, the Momentum nearing its mid-line, but the RSI now consolidating around 62. The main bullish target continues being 1.4345 the highest since the Brexit referendum established last January.

Support levels: 1.4180 1.4150 1.4115

Resistance levels: 1.4295 1.4345 1.4390

View Live Chart for the GBP/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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