GBP/USD outlook: Slight optimism pushes the price in the upper side of near-term range
Cable remains in green and probes again above 1.24 barrier in early Thursday’s trading, boosted by mild optimism in the market and mixed UK data which did not deteriorate in a grade that was expected.
Fresh advance moved into the upper side of the range that lasts nearly two weeks and is spanned between 1.2485 (27 Mar high) and 1.2164 (7 Apr low).
Near-term action remains underpinned by rising 10DMA which attempts to form bull-cross with 30DMA and help bulls, but daily techs are still mixed (bullish momentum started to fade, stochastic heads north and RSI is flat) and lack clearer direction signal. Read more...
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GBP/USD: Testing unemployment claims
GBP/USD has been edging higher as Johnson's condition improves while the extension of the lockdown and a busy US economic calendar promise action, according to FXStreet’s analyst Yohay Elam.
Key quotes
“After spending the third night in intensive care, the next update about the PM's situation will also be eyed later in the day, alongside new statistics about COVID-19.”
“Unemployment claims are set to drop to 5.25 million in the week ending on April 3 after leaping to 6.648 million in the previous week.” Read more...
GBP/USD climbs to weekly tops, further beyond 1.2400 mark
The GBP/USD pair climbed to fresh weekly tops during the early European session and finally seems to have found acceptance above the 1.2400 round-figure mark.
The pair quickly reversed an early dip to the 1.2360 region and turned positive for the third consecutive session, albeit lacked any follow-through amid a subdued activity through the early part Thursday's trading action.
The US dollar remained on the defensive in the wake of the latest optimism over expectations that the coronavirus pandemic peak could come soon and was further pressured by a weaker tone around the US Treasury bond yields.
However, the fact that the United Kingdom recorded its highest daily death toll on Wednesday held investors from placing any aggressive bullish bets and seemed to be one of the key factors capping any strong gains.
Meanwhile, Thursday's mixed UK macro data, showing an unexpected economic contraction and a surge in the trade balance for February, did little to impress bullish traders or assist the pair to capitalize on this week's goodish positive move. Read more...
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