GBP/USD: holding ground ahead of key events

GBP/USD Current price: 1.3886

  • UK Chancellor of the Exchequer Phillip Hammond presents  the Spring Statement.
  • GBP/USD needs to gain momentum above 1.3930 to turn short-term bullish.

The GBP/USD pair trades slightly below the 1.3900 figure after hitting  1.3917 late Monday, as the market waits for UK Chancellor of the Exchequer Phillip Hammond presentation of the Spring Statement. He will present to MPs a slimmed version of the Budget, now moved to Autumn, and will answer questions. The event is expected to last around two hours, and bring little new in terms of budget, although it will include fresh forecast on GDP growth and UK government borrowing, adding also Brexit's impact on the economy. The Statement will come alongside with the release of US inflation, which may result in some bumpy action around the GBP/USD. In the meantime, the 4 hours chart presents a neutral stance for the short term, as the pair is barely holding above horizontal moving averages, while technical indicators retreat within positive territory. The pair needs to surpass 1.3929, the high set last week to anticipate some additional gains ahead, with 1.3965 and 1.4000 being the next intraday resistances and probable bullish targets.

Support levels: 1.3870 1.3835 1.3800

Resistance levels: 1.3930 1.3965 1.4000     

View Live Chart for the GBP/USD

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