GBP/USD Daily Price Forecast – The Cable Bears Remaining Under Control after Yesterday’s Appalling PlungeFrom the Technical front, the pair seems to experience a slight upward shift in the near term. However, it may bounce back from 1.3022 support trend line to sustain downtrend.
The Cable continued to remain subdued drifting near its comfortable 1.1300 levels after yesterday’s struggle. In the last day’s morning session, the GBP/USD had a sudden breakdown on the backdrop of lower-than-expected Eurozone and German PPI data. Nonetheless, the pair had attempted to push itself upwards, but the efforts missed aims after greenback started gaining strength. Last day, the USD Index had elevated on some astounding positive Retail Sales figures a negative market expectation.
However, the UK’s robust Retail data couldn’t win over the upbeat US Retail and Jobless Claims figures yesterday.
Moving forward, on the occasion of Good Friday, there remains a lack of events alluding impacts on the cable. Also on the Brexit front, there are fewer updates as the House got adjourned on Easter Recess.
Key Significant GBP/USD Events
The U.S. Commodity Futures Trading Commission will publish the Weekly Commitments of Traders. The report analyses the net positions of the US futures markets. The previous stats were at negative £ 6.5 Thousand. The outcome of this event is expected to stem less volatility in the pair’s movement for the day.
The U.S. Census Bureau will issue the March MoM Building Permits, and Housing Starts figures. An increasing number for both reports would signify the strengthening of USD. The analyst expects 41.9 percent hike in Building Permits while 21.0 percent decrease in the Housing Starts. If the event misses estimates, then that will act as a catalyst for the cable’s uptrend.
The most significant 100-days and 200-days Simple Moving Averages (SMA) got positioned above the GBP/USD showing a bearish trend. Notably, the 200-days SMA remained well above the 100-days SMA confirm active bear call in the long term. However, it seems to move slightly upwards in the near term touching 1.3022 levels sustaining downtrend. Hence, the pair appeared to cross the EMA to the upper vicinity of the Bollinger Bands (BB). The GBP/USD remained cushioned near the lowest 1.2976 support levels in the morning. On the upside, the pair may face the resistance lines near 1.3050 levels.