GBP/USD tests 2018-high ahead of UK data-intensive calendar next week


  • The GBP/USD is facing important resistance at 1.4245-1.4346.
  • The positive sentiment on the pound helps to keep the pair close to yearly highs.

The GBP/USD is trading at around 1.4253 up 0.17% on Friday. It is trading close to key resistance levels with the 200-period simple moving average on the weekly chart at 1.4245 and the 2018 high at 1.4346. 

Earlier on Friday, the pound tested levels not seen since January 25 (2018 high). In the absence of significant data from the UK, the pair is mainly driven by the general market sentiment, the speeches from Fed’s member in the US and the technical outlook.
 
It will be a data-intensive calendar for the cable next week with the UK inflation, labor market and retail sales data. The data will be closely looked by investors as the Bank of England will be watching for clues to hike sooner rather than later.

On the other side of the Atlantic, next week will see the US retail sales report for March, housing starts for March, building permits and a plethora of Fed’s members' speeches. 

The Pound this week benefitted from a fresh wave of buying as the Bank of England is expected to raise rates next month. Also on Thursday, the UK Brexit secretary David Davis said that nothing will really change for business during the post-Brexit transition period; which helped keep the positive sentiment on the pair. The somewhat easing of tensions between the US and China and the return of the risk-on mood benefitted the cable.

GBP/USD 4-hour chart

The market rejected the 1.4300 resistance level an traded as high as 1.4297 in Friday’s trading. However, the current bull momentum is strong and the bears were unable to generate any convincing counter-trend move down up to this point. A failure to move beyond the 1.4245-1.4346 resistance zone could lead to a pullback to the 1.4145 swing low and 1.41 psychological level in the short-term. A break above the 1.4245-1.4346 zone can lead to an acceleration towards the 1.4500 psychological level.

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Forex MAJORS

Cryptocurrencies

Signatures