GBP/USD Daily Price Forecast – Cable Continues Plunging Ahead of May’s Fourth Attempt

The GBP/USD pair tumbles down the road since last few consecutive sessions over Brexit uncertainties. Ichimoku Clouds cast bearish outlook for the Sterling Pound pair.
Nikhil Khandelwal
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During the early morning hours, the Cable showcased consolidation phase near 1.2850 levels. The stop-loss in the pair seems activated over its consistent fall since the start of the week. However, the GBP/USD pair has lost hold of its healthy 1.3000 psychological levels.

No-Deal or No-Brexit?

UK PM Theresa May sets for a last attempt to get her deal pass through the House of Commons. Theresa May appears pretty confident this time. The PM will conduct the voting in the first week of June.

Speculations came out that there has been some positive outcome out of the Cross-party talks. Therefore, PM’s primary hope remains on the Opposition party’s support during the voting session. The PM has somewhat approved the Labor party’s need for a Customs Union in her agreement.

However, the Tories firmly stay against her and may deceive her in the upcoming voting. The Conservatives claimed that sustaining Custom Unions would continue to degrade the country’s integrity until exit. And, the Senior Officials are also looking for the PM to step down to the earliest.

So, if May’s fails to attain majority for this last time, then there might be either a “No-Deal” Brexit or a Second Referendum.

In the middle of the Brexit complications, the Sterling Pound pair finds it hard to breathe. Any positive news on this front may bestow the Cable growth.

Meanwhile, the Greenback computed against its significant rivals was trading near 97.15 levels. Optimism around US-Sino trade talks keeps the US Dollar Index intact near its comfort levels.

GBP/USD Influencing Events

The Sterling investors wait for the BOE’s Jonathan Haskel comments over the UK’s economic conditions. Haskel’s statements might find some impact on the pair laterwards as this is the only event for GBP today.

The USD-specific events have occupied mainly the primary space in the event calendar than the GBP-specific events. The US Housing Starts, Building Permits, and both Initial & Continuing Jobless Claims will get released at 12:30 GMT. The consensus expects the Housing and Construction sector data to go bullish this time. Whereas, the market remained bearish with their estimates on Labor market indexes. Laterwards, the Fed Philadelphia Manufacturing Survey is hoped to report a 0.5% increase. At 16:15 GMT, the Fed’s Brainard would address on the US Monetary and Fiscal decisions.

Technical Analysis

30-Minutes Chart

GBPUSD 30 Min 16 May 2019

The Moving Average Convergence Divergence (MACD) displayed in negative levels today. The short-term moving averages stood below the long term moving average, and this alludes downward momentum. All the significant 50-days, 100-days, and 200-days Simple Moving Averages (SMA) appeared above the Cable. And, this action signaled a bearish outlook among the investors of the GBP/USD pair.

4-Hours Chart

GBPUSD 240 Min 16 May 2019

The Ichimoku Clouds suggested strong bearish prospects over the Cable today. The green cloud shadowed over the pair during the Asian session developing a bearish stance. The Relative Strength Index (RSI) was hovering near 25 levels. The RSI signaled strong selling bias among the investors today.

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