GBP/USD Daily Price Forecast – Robust 1.3024 Levels may get Breached on Positive UK GDP Data

On Friday morning, the GBP/USD pair was taking rounds near the 1.3020 levels. The Cable had begun the week near 1.3160 top levels. From there, the pair witnessed sharp pullbacks continuous for three days in a row. The bears came under control near the lowest 1.2980 levels.  

Brexit Updates

Brexit deadlock caught market attention today when Jeremy Corbyn said that the PM did not offer anything significant yet over Brexit compromises. The cross-party talks failed to get a consensus. Theresa May decided to continue talks in the next week. On the other side, the Tories continued demanding Prime Minister’s exit plans. Onto their consistent appeals, May has announced to meet the leaders to address this increasing demand for her resignation.

Meanwhile, May has planned to execute votes over Brexit after two weeks if no progress comes out of cross-party talks. Most probably now it may drag the deadlock further. Amid such inadequate improvements on the Brexit side, the GBP/USD pair seemed to whorl near 1.3020 levels.

Yesterday, the Fed’s Powel bullish statement over the American economy, Crude Inventories, and the EIA report supported the Green money. The new US-led tariffs would start from today, and investors remain alerted over any further actions over the US-Sino trade deadlock. A steady Greenback today, allowed the Cable to stay within the support line near 1.3002 levels.

GBP/USD Influencing Events

On Friday, several GBP significant events get lined up around 08:30 GMT. Among them, the most important data which needs a closer watch is the UK Q1 GDP figures (both QoQ & YoY). The GDP data is estimated to grow with 0.3 percent. Over the Industrial & Manufacturing Production for March (Both YoY & MoM), the street analysts take a bullish stance this time. Further, the National Statistics will publish the March YoY Manufacturing Production, anticipated to come around 1.3 percent.

Over the USD specific events side, the YoY & MoM CPI excluding Food & Energy may come out at 12:30 GMT. This time, the CPI data is expected to come out higher than the previous numbers.

The Financial Management Service of the US would release the April Budget Statement laterwards. And, the Budget is awaited to come near $165 billion. Meanwhile, the month’s CPI YoY and CPI core s.a. is hoped to increase.

Technical Analysis

The GBP/USD pair continued to move under the shelter of the red Ichimoku Clouds. The clouds had acted as strong resistance points in the last few sessions. Hence, the pair found some traction in moving upwards beyond 1.3076 levels. The GBP/USD pair is expected to show a bearish pattern in the near-term. The base line and the conversion move almost hand-in-hand, hardly some pips away. To be precise, the trend seems to remain neutral and may reverse at any point in time. The Relative Strength Index (RSI) indicated near 44.6 levels, showing neutral/bearish market interest.