GBP/USD Daily Price Forecast – The Cable Anticipates Wednesday’s EU Summit

The Cable seems to follow uptrend heading to breach the sound resistance level of 1.1321. Optimism developed around the Brexit talks, and the weakening of the greenback laid the foundation for the GBP/USD elevation.

The US Dollar Index had extended its last week plunge into this week reaching near the lowest vicinity of 96.95 levels. The index that computes the greenback against the six major rival currencies remained less bothered even with the improvement in the US Yield figures.

At the time of writing this article (09:25 GMT), the pair was trading near 1.3077 level.

May to meet Angela and Emmanuel

UK PM Theresa May has arranged last minute meets with the leaders of Germany and France later the day. She will urge the EU leaders to support her get an additional Brexit extension until June 30. In the talks with the EU leaders, she is expected to explain the rationales behind the extension.

In the EU Summit on Wednesday, the officials of 27 EU nations will consider her request and will make a combined decision on approving the Brexit.

If the UK remains until May 23 in the EU consortium, then they will have to take part in the EU elections.

However, the odds of EU Officials rejecting May’s request remains low. The GBP/USD is conquering new heights daily on the expectation of approval from the EU side. Investors need to stay alert on upcoming Brexit headlines.

Key GBP/USD Influencing Event:

By 23:01 GMT, The British Retail Consortium (BRC) will broadcast the Like-For-Like Retail Sales (YoY) for March. These reports denote the performance of the UK’s retail sector. The Market analysts have not stated any estimate over the previous numbers which was at  -0.1 percent.

Technical Analysis

The GBP/USD pair seemed to morph upwards since the last couple of trading sessions. The pair had touched and rebounded from the strong resistance of 1.3123 level. The cable was trading above the significant 21-day SMA (Simple Moving Average), 55-day SMA, 100-day SMA, and 200-day SMA showing high bullish stance for the future movements of the pair. If the cable continues to move upwards, then resistance level of 1.1389 awaits it. The RSI (Relative Strength Index) broke through the standard upper range of 70 levels showing signs of a strong bullish trend and overbought scenario.