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
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
AUD/USD stays directed toward 0.6500 as RBA's Bullock speaks
AUD/USD is extending losses toward 0.6500 in Asian trading on Tuesday. The Aussie Dollar remains offered after the Reserve Bank of Australia extended the pause. Markets digest the less hawkish policy statement while Governor Bullock's press conference gets underway.
USD/JPY holds gains below 150.00 on the expected BoJ rate hike
USD/JPY holds gains below 150.00, as the Japanese Yen stays vulnerable amid a classic 'sell the fact' trading on the hawkish BoJ decision. The BoJ lifted the interest rate by 10 basis points (bps) from -0.1% to 0% for the first time since 2007 and abandoned the YCC framework.
Gold price flat-lines above one-week low, awaits the crucial Fed decision on Wednesday
Gold price oscillates in a range and is influenced by a combination of diverging forces. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside. Geopolitical risks lend some support to the XAU/USD ahead of the key FOMC meeting.
Bitcoin price shows weakness, but new BTC whales have created solid support at $56,400
Bitcoin price downside momentum continues to gain strength, giving sidelined and late bulls a chance to buy the dip. The market remains focussed on the oncoming halving, expected to kick off the next bull cycle. For the meantime, however, spot BTC ETFs remain the main play in the market.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.