GBP/USD Daily Price Forecast – Pair Retested 1.3244 Resistance LevelRecession Fears Seemed To Cool Down. Brexit Uncertainties Capped GBP/USD Gains.
The Cable started off the day on a consolidation mode. Later, the pair took onto a lower stance following a downward rally. The pair tumbled from 1.3202 to 1.3179 levels after the USD Index soared in the morning following the speech of the FOMC Member Rosengren. He suggested that in order to increase the long-term interest rates, more buying of the short-term bills needs to be performed. These words undermined the plunging USD Index making it upshot from 96.008 to 96.090 levels, hence lowering the cable. The Recession fears have cooled down to a certain extent following the mitigating speeches of multiple US Fed dignitaries during the day. This calm environment may change at any point in time. Hence, Investors must keep a scrutinized eye on all the latest significant news.
The pair was later seen to roar, jumping heights when the Parliamentarians took over the Brexit control from Theresa May. The cable is currently confused about which direction to proceed with and is hence following a range-bound pattern. The pair is expected to show significant movement after each Brexit update.
At the time of writing this article (10:58 GMT), the GBP/USD was trading at 1.3228 level.
Today at 09:30 GMT, the British Banker’s Association (BBA) released the number of home loans issued by them during the previous fiscal quarter. This index was recorded at 35.299K as compared to the previous 39.555K.
A few moments ago (at 11:00 GMT), Deputy Governor of Bank of England (BoE), Dr. Ben Broadbent spoke on behalf of the Monetary Policy Committee on statistics.
Key GBP/USD Impacting Events
As the GBP weighing events have occurred for the day. Cable traders look forward to the USD Index impacting news to come
By 12:30 GMT,
- US Housing Starts (MoM) for February
- US Building Permits (MoM) for February
By 13:00 GMT,
- S&P/Case- Shiller Home Home Price Indices (YoY) for January
- Housing Price Index (MoM) for January
- Consumer Confidence
The GBP/USD pair took a Support and Rallied upward from the 23.6% Fibonacci Retracement Level. The Cable sustained its levels and followed a range-bound pattern fluctuating from the day’s low to the day’s high. The cable was trading at a good level above the major Simple Moving Averages (SMA). It can be assumed that the huge gap between the SMA and the last traded level will create a bullish stance for the pair in the upcoming sessions. If the Brexit outcomes are positive for the pair, then the Cable must derive new high levels.