GBP/USD Daily Price Forecast – Cable Chart Displaying Three White Soldiers Candlestick Pattern

The Cable lost around 70 pips yesterday following the release of weak UK April Claimant Count Change figures. The bears came under control near 1.2910/14 levels in the last NA session. During the early opening hours, the GBP/USD pair continued maintaining the consolidation mode near the same levels.

Somehow, the pair showcased a negative trend laterwards on the back of weak German Q1 YoY GDP figures. The numbers had got reported around  0.6% over the prior 0.7%. This lower sentiment helped the USD Index to weigher than the rivals, pushing down the Cable. The GBP/USD pair then came down to 1.2900 levels. More events are about to get released later the day and impact the pair’s movements. However, there are certain USD-specific events lined up amid absence of GBP-specific events.

Brexit Latest Status Quo

On Tuesday, Theresa May told that there would be voting for the fourth time on the revised Brexit deal on the first week of June. The Prime Minister urged the Labor Party’s head Jermy Corbyn to give his support for Brexit deal. The government would later talk with the EU over having close customs arrangements, rights of the workers, and environmental protection demands. This proposal looks compelling on the Opposition Party to give their support for Brexit deadlock.

If the Brexit agreement gets defeated in the second-reading, then it will become challenging to get passed in the present session. While also, the defeat of the bill passage will pressurize the PM to leave.

The Tories have expressed their dislikes upon the May’s Custom-union offerings as one of the settlements in the Cross-party talks. They stated that May’s decision to cater a few demands of the Labor party would lead to further consequences. Moreover, the PM might have to resign if the Brexit deal did not get majority before the EU elections.

On the other side of the equation, the Greenback remained see-sawed in the narrow range of 97.50/55 levels. The market recovers and stays positive on US-Sino trade talks. The early fall in the Chinese economy amid weak reports and poor German Q1 GDP scores supported the Index. Investors look forward to the upcoming mixed expected USD events.     

GBP/USD Influencing Events

As mentioned earlier, there are no GBP-specific events for the day. However, a couple of USD-specific events do line up to get reported later the day.

At around 12:30 GMT, three bearish reports will get published. The Street analysts stay bearish on the April Retail Sales Control Group figures. They expect the numbers to report near 0.4% to the prior 1.0%. If the estimates come true, then those results might help the pair elevate from the current lows.

However, things may reverse post-release of bullish-expected US MoM Industrial figures for April. The market holds a strong bullish stance on these numbers to grow 0.3% from the previous negative 0.1%.   

Technical Analysis

4-Hours Chart

The 4-Hours Ichimoku Cloud is not quite fulfilling the complete criteria for a sustained upside projection target. The cloud seemed to shelter the pair today, with a resistance level near 1.3018 levels. However, the Cable experienced a support point near 1.2898 levels. Currently, the pair was hovering near 1.2916 levels. The RSI appeared near 34 levels, signaling a moderate buying.

1-Hour Chart

The Keltner Channel’s (KC) upper band appeared near 1.2935 levels, and the lower band was near 1.2902 levels. The Cable was hovering below the Central line of the KC, alluding a bear call. The GBP/USD candle may breach the lower boundary of the KC in the next session. The Relative Strength Index (RSI) stood at 32 and indicated an active selling. The pair will likely remain along with these levels as traders wait for more information on Brexit.