GBP/USD Daily Price Forecast – Strong Resistance Level at 1.3127

The Cable rang the Tuesday morning bell near 1.3098 levels and marched off to 1.3130 levels. The main driver for the upliftment was the tumbling US Dollar Index. The Greenback had settled lower since quite a few days struggling to breathe amid US-Sino Trade concerns.

In the meanwhile, Brexit tensions add fuel to the high tension scenario. UK PM Theresa May had promised to step down from her premiership if her deal is accepted. However, the MPs complaint that they have not yet received any road map for her resignation. They want May to step down from her role post-EU elections set on May 23.

Nevertheless, if May gets down from the office, then the UK will have to conduct elections for a new leader. This activity would only lead to a further extension in the timeline of the EU Britain divorce. Hence, Continuous pressure adding to the Brexit side will create more complexities and uncertainties. In this way, the Brexit impasse may continue and may significantly impact the Cable’s movements.

Despite all, there remains a silver lining in the dark Brexit clouds. Cross Party talks may resume soon. May has nodded for a temporary appeal to the Customs Union. However, the Labor Party had placed their wants for a permanent Customs set up.

GBP/USD Impacting Events

There are quite less major GBP-specific Events lined up for the day. However, the UK Halifax House Prices will release the April data. The consensus stays bearish over the housing data. Though it is a low significant one, the negative expectation may find some minor post-release effect over the Cable.

Also, at around 08:00 GMT, Cunliffe of Bank of England (BoE) will comment on the economic outlook of the UK region. This speech may have a mediocre effect on the GBP/USD pair. BoE’s Haldane will mention his points later the day near 16:30 GMT.

Technical Analysis

30-Minutes Chart

The pair seemed to overcome traction and jump heights reaching near 1.3125 levels. The GBP/USD pair hovered well above the significant SMAs, alluding bullish stances. Anyhow to mark the next bullish leg, the pair needs to breach the robust 1.3150 resistance levels.

4-Hours Chart

Over the medium term, the Cable was testing the 1.3136 resistance levels. The 50-days and 100-days SMA appeared to approach each other with the pair standing above this pivotal point. Though drifting near the upper vicinity of the Bollinger Bands (BB), the pair may face difficulty around 1.3176 levels. The Moving Average Convergence Divergence (MACD) remained in the upper part of the center line and showed uptrend signals.