GBP/USD Daily Price Forecast – Bulls Hit Hard at 1.2917 Levels Ahead of Downbeat US GDP Data

The GBP/USD pair opened at 1.2901 levels in the early hours of the day. The cable further continued to rise above and was trading at 1.2912 at 07:00 GMT. Notably, the cable today attempted once more to reach yesterday’s highest point of 1.2914 levels.

Today’s Brexit news about stalled cross-party talks and Theresa May’s retreating of Brexit approval plan have stressed the GBP. Later in the morning, the new over Wales Independence Vote failed to appreciate the currency.

The US dollar continued weakening against the other currencies which helped the pair to climb up slightly.

In the absence of high volatile GBP events, any news on Brexit would significantly impact the cable.

GBP/USD Influential Events

GBP Specific Events

08:30 GMT

• March BBA Mortgage Approvals

These approvals showcase the count of BBA issued home loans during the specified period. The previous numbers recorded as 39.083K.

10:00 GMT

• April MoM CBI Industrial Trends Survey – Orders

These reports provide expert quantitive figures on the on-going business conditions of the region. The market analysts remain hawkish on the economic status expecting a 2 points rise this time.

US Specific Events

12:30 GMT

• The US Q1 Annualized GDP Price Index (Highly Volatile)

The consensus estimates a 0.1 percent decrease for this quarter to the prior 2.2 percent.

• The US Q1 QoQ Personal Consumption Expenditures Prices

The market expects the figures to come around 1.5 percent to the previous 1.3 percent.

 

• The US QoQ Core Personal Consumption

 

The analysts take a bearish call on the reports. This time, they expect a 0.2 percent decrease to the earlier 1.8 percent.

14:00 GMT

• The April Michigan Consumer Sentiment Index

This report is the only bullish expected event for today. The index focuses on consumer spending in the region. The street analysts anticipate the figures to roll around 97.0 points, to the last 96.9 points.

Technical Analysis

The 200-days significant SMA was traveling near 1.2980 levels, 74 pips above the cable. In the last couple of sessions, the pair seemed to show neutral investor interest. The pair had knocked and rebounded twice from the 1.2917 resistance level, since yesterday. Something powerful is required to take the pair upwards. However, the overall sentiment remains low. The Relative Strength Index (RSI) hovered near 50 levels, revealing a neutral trading sentiment.