GBP/USD Daily Price Forecast – The Cable Arouse In The Asian Session On Brexit Relief Hopes

The Cable showed pretty decent performance during the Asian trading session. The pair had uplifted on optimistic updates on the Brexit front. UK PM Theresa May recently announced that she would talk with the Opposition Labour leader Jeremy Corbyn to help untangle the Brexit deadlock.

GBP/USD remained reluctant to get dragged below the strong support line of 1.3135 in the morning hours. The pair was 0.48 percent up at around 07:45 GMT.

Brexit issues seem to get softer with May’s recent updates to unlock the impasse. If this is a genuine approach or not, is not quite sure until real facts arrive on the table. However, irrespective of the future happenings the markets got elevated after this positive news. Deadline of April 12 is coming near with only eight days left for the UK. May will in no case agree for a no-deal Brexit, albeit a softer one has higher chances. If a proper deal gets ready before April 12, then the UK may leave on May 22. And if things fail to set base before the deadline, conditions may worsen.

In a nutshell, the morning jump in the GBP/USD could remain short-lived and may slump again to the lower vicinity of the pair depending upon the future Brexit news.

Key GBP/USD Events To Have Close Watch Today:

09:30 GMT

The Chartered Institute of Purchasing & Supply and the Markit Economics for the service sector in UK zone will broadcast the March PMI. Unlike the manufacturing sector PMI, the UK service sector PMI does not affect the GDP. The market analysts expect Bearish stance of 50.9 percent against the previous 51.3 percent.

14:00 GMT

The Institute for Supply Management (ISM) will publish the March Non-Manufacturing Index for the business forecast in Non-Manufacturing Sector across the US. The data about this sector is more predictable and known, hence it may have a lesser impact on the market than the Manufacturing ISM. The consensus analysts expect a number lesser by 1.7 percent than previous 59.7 percent.

Technical Analysis

The GBP/USD pair remained in the consolidation phase during the initial trading hours. The Pair, however, made a jump to the next level of resistance. The pair hovered near the 1.3196 level but couldn’t break it. The cable remained above the Simple Moving Averages (SMA) computed for the major days. This position of the pair signals of a bullish trend to follow. The Relative Strength Index (RSI) on an average remained within the 30-70 range albeit seen breaking the upper bound showing overbuying signals.