- GBP/USD wavers in a choppy range near weekly top.
- Sustained trading beyond key EMA, trend lines joins hopes of easy budget to favor bulls.
GBP/USD trims prior gains while declining to 1.3955, down 0.08% intraday, during Wednesday’s Asian session. In doing so, the quote fizzles Tuesday’s bounce off 21-day EMA amid the bearish MACD conditions.
However, the cable’s sustained trading beyond key trend lines from December and September 2020, coupled with hopes of a market-favorable UK budget, suggest further upside for the GBP/USD prices.
Read: UK furlough scheme will be extended from April to September in budget – FT
It’s worth mentioning that an upside break of the 1.4000 threshold will trigger a fresh rise targeting the 1.4085 and the 1.4100 resistances while February’s top, also the highest since early 2018, surrounding 1.4240, will challenge the bulls afterward.
Alternatively, a daily closing below the 21-day EMA level of 1.3905 will need to provide a daily closing below the 1.3900 round-figure to direct the bearish bias towards an ascending trend line from December 21, 2020, currently around 1.3790.
In a case where GBP/USD bears dominate past-1.3790, January’s top surrounding 1.3750 can offer an intermediate halt before dragging the quote back to a longer-term support line near 1.3600.
Overall, GBP/USD stays in an uptrend and hence any more positive from the budget will escalate the cable’s run-up to refresh multi-month high. On the contrary, the disappointment will also have larger repercussions.
GBP/USD daily chart
Trend: Bullish
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
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.