- The prices bounce off more than two-month-old ascending trend-line during early Wednesday.
- The UK CPI will be in focus with Brexit news reports likely offering intermediate moves.
GBP/USD trades near 1.3050 during the early Asian session on Wednesday. The pair cable remained soft on Tuesday due to mixed employment data but is currently recovering from an upward sloping support-line stretched since February 14.
The British jobs report flashed mixed signals yesterday with the unemployment rate and average earnings including bonus holding their 3.9% and 3.5% respective priors. However, higher than expected 20.0K claimant count change to 28.3K and soft average earnings excluding bonus at 3.4% versus 3.5% previous gained major market attention.
News reports concerning the deadlock in the cross-party Brexit talks were also weighing on the prices during previous-day whereas little importance was given to the US industrial production that dropped -0.1% against +0.2% forecast during March.
Traders mildly bid the Cable during early-day expecting more than two-month-old support-line to trigger the up-move.
Coming up in the focus will be the UK consumer price index (CPI) figure for March. The headline inflation gauge is likely to increase to 2.0% from 1.9% on a YoY basis but soften to 0.3% from 0.5% on a monthly format.
GBP/USD Technical Analysis
Given the quote’s recent U-turn, chances of it heading towards the key 1.3100 – 1.3105 resistance-confluence comprising 50-day simple moving average (SMA) level and a five-week long descending trend-line are much brighter. Should prices rally beyond 1.3105, 1.3130 and 1.3200 can come alive on the chart.
In a case where the support-line figure of 1.3030 fails to limit the pair’s downside, 200-day SMA level of 1.2970 and 1.2950 including 100-day SMA could gain market attention.
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
EUR/USD holds below 1.0750 ahead of key US data
EUR/USD trades in a tight range below 1.0750 in the European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD consolidates above 1.2500, eyes on US PCE data
GBP/USD fluctuates at around 1.2500 in the European session on Friday following the three-day rebound. The PCE inflation data for March will be watched closely by market participants later in the day.
Gold clings to modest daily gains at around $2,350
Gold stays in positive territory at around $2,350 after closing in positive territory on Thursday. The benchmark 10-year US Treasury bond yield edges lower ahead of US PCE Price Index data, allowing XAU/USD to stretch higher.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.