- DXY selling remains unabated in Europe.
- Fresh round Brexit negotiations eyed.
- Focus on the US data dump.
The GBPUSD pair is seen printing fresh weekly tops of 1.4077, as the broad-based US dollar selling remains the underlying theme so far this Thursday, despite rising Treasury yields.
Wednesday’s mixed US CPI and retail sales data re-ignited concerns over the US economic growth prospects, which could keep the Fed from raising rates 3 to four times this year.
Moreover, Cable also received fresh impetus on the latest headlines citing that the EU is all set for another round of the Brexit negotiations after the EU figured out that the Brexit talks between the UK and the European Commission had advanced sufficiently.
Furthermore, increased expectations of a rebound in the UK’s retail sales volumes last month combined with the risk-on rally in the European equities helped lift the sentiment around the GBP bulls.
The pair now awaits the US macro releases lined up later in the NA session for fresh incentives amid a data-empty UK docket while the broad market sentiment will also play a key role behind the GBP’s moves.
GBPUSD levels to watch
Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers, noted, “Wednesday's close above psychological 1.40 barrier was a bullish signal, with a big bullish daily candle with long tail underpinning. Bullish setup of daily studies supports but still lacking stronger momentum, which could obstruct bulls. Firm break above 1.4066 and 1.4081 (Fibo 61.8% of 1.4277/1.3764) is needed for fresh bullish signal for an extension of recovery leg at 1.3764 (09 Feb low). Broken 20SMA offers immediate support at 1.4021 with 1.40 handle expected to ideally hold and deeper dips to be contained by 10SMA (1.3940) to keep bullish stance intact. Res: 1.4066; 1.4081; 1.4156; 1.4200. Sup: 1.4021; 1.4000; 1.3974; 1.3940.”
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 steady below 1.0800 after US PCE meets expectations
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips. Fed Chair Jerome Powell set to speak ahead of the weekly close.
GBP/USD hovers around 1.2620 in dull trading
GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.
Gold price sits at all-time highs above $2,230
Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.