• The British pound barely advances 0.01% in the day.
  • Dismal UK economic data weighed on the GBP/USD pair.
  • GBP/USD Price Forecast: The path of least resistance is downward biased, as GBP bulls failed to reclaim 1.3200.

The British pound rebounded from intraday losses in the mid-North American session, though it failed to reclaim the 1.3200 mark, courtesy of a risk-on market mood, Fed hawkishness, and Bank of England’s rate hike, with one dissenter, perceived as a dovish increase. At the time of writing, the GBP/USD is trading at 1.3187.

Late in the North American session, the market sentiment improved, boosting appetite for risk-sensitive currencies like the GBP. Nevertheless, amid an increased appetite for the greenback, disappointing data coming from the UK put a lid on the GBP/USD recovery.

The UK economic docket reported the UK’s Retail Sales, which declined by 0.3% in February, lower than the 0.6% increase expected and trailed January’s 1.9% reading. Furthermore, sales excluding petrol fell 0.7% in February and missed forecasts with around a 0.5% increment estimate.

Meanwhile, across the pond, two commercial banks expect the US central bank to hike 50-bps. On Friday, Goldman Sachs and Citigroup expressed that they estimate that the Federal Reserve would hike 50-bps in the meetings of May and June, which would lift the Federal Funds Rate (FFR) to 1.50% by the end of the first half of the year.

The bank’s forecasts come at what Fed policymakers expressed during the week, led by Fed Chairman Jerome Powell, openness to increasing rates by more than 25 bps, as he spoke at the NABE conference on Monday.

The US economic docket featured Pending Home Sales for February shrank 4.1% from a 1% m/m increase expected. Furthermore, the University of Michigan Consumer Sentiment Final for March came at 59.4 from 59.7, while inflation expectations stayed at 5.4% vs. 4.9% on the previous report.

GBP/USD Price Forecast: Technical outlook

The GBP/USD failure to reclaim the 1.3200 mark for the second-consecutive day left the pair vulnerable to further selling pressure. Furthermore, the Relative Strenght Index (RSI) oscillator is at 44 at bearish territory, aiming down, signaling that the GBP/USD might add to losses in the coming days, as month-end flows towards the greenback might extend the fall.

That said, the GBP/USD first support would be December 8, 2021, a daily low at 1.3160. Breach of the latter would expose the 1.3105, followed by the 1.3000 mark.

GBP/USD

Overview
Today last price 1.3187
Today Daily Change -0.0002
Today Daily Change % -0.02
Today daily open 1.3187
 
Trends
Daily SMA20 1.32
Daily SMA50 1.3406
Daily SMA100 1.3404
Daily SMA200 1.3584
 
Levels
Previous Daily High 1.3218
Previous Daily Low 1.3157
Previous Weekly High 1.3211
Previous Weekly Low 1.3
Previous Monthly High 1.3644
Previous Monthly Low 1.3273
Daily Fibonacci 38.2% 1.318
Daily Fibonacci 61.8% 1.3194
Daily Pivot Point S1 1.3157
Daily Pivot Point S2 1.3127
Daily Pivot Point S3 1.3097
Daily Pivot Point R1 1.3217
Daily Pivot Point R2 1.3248
Daily Pivot Point R3 1.3278

 

 

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 Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD struggles around 0.7000 amid weaker USD, Australian Wage data miss

AUD/USD struggles around 0.7000 amid weaker USD, Australian Wage data miss

AUD/USD is trading close to 0.7000, consolidating the dismal Australian wage price data-led losses. Softening wage growth data could prompt the RBA to slow down its policy tightening. The US dollar looks to extend the previous sell-off ahead of the FOMC minutes.

AUD/USD News

EUR/USD: 1.0100 remains in sight below 21 DMA, EU GDP, Fed minutes awaited

EUR/USD: 1.0100 remains in sight below 21 DMA, EU GDP, Fed minutes awaited

EUR/USD consolidates the previous rebound amid a cautiously optimistic mood. US dollar takes a breather ahead of Fed minutes, the euro awaits Eurozone GDP. The shared currency remains weighed down by recession fears and gas crises.

EUR/USD News

Gold bears are lurking below $1,785

Gold bears are lurking below $1,785

Gold is flat on the day trading at around $1,776.50 and sticking to a tight range of between $1,773.91 to a high of $1,776.85. The yellow metal fell due to rising Treasury yields weighed on investor appetite. A slightly stronger US dollar was also a headwind for investor demand. 

Gold News

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price to provide a buying opportunity before exploding 35%

Dogecoin price sees a slow decline in bullish momentum as a major hurdle puts an end to its explosive move. A pullback is emerging for DOGE and is likely an opportunity that will allow bulls to recuperate and prepare for the next rally.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures