GBP/USD outlook: Cable moves within extended range ahead of key US data

Slobodan Drvenica Windsor Brokers

GBP/USD

Cable remains in extended sideways mode, with a narrow range on holiday-thinned markets on Good Friday.

Near-term action is ranging between 200DMA (1.2588) and thin daily cloud (spanned between 1.2634 and 1.2663), with predominantly bearish daily studies keeping the downside at risk, although the pair is still looking for stronger direction signal.

Markets await release of key economic data today – US PCE price index – Fed’s preferred inflation measure, which is expected to contribute to timing and pace of highly anticipated Fed rate cuts.

Basically, higher than expected inflation numbers in February would likely cool the expectations for the start of rate cuts in June and lift the dollar, though significantly lower volumes on Good Friday may affect the action.

Res: 1.2634; 1.2663; 1.2689; 1.2715.
Sup: 1.2600; 1.2588; 1.2575; 1.2518.

Interested in GBP/USD technicals? Check out the key levels

1. R3 1.2726
2. R2 1.269
3. R1 1.2657
PP 1.2622
1. S1 1.2588
2. S2 1.2553
3. S3 1.252

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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