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GBP/USD Daily Price Forecast – The Cable Heads Bullish Amid the GBP Bearish Events

By:
Nikhil Khandelwal
Updated: May 1, 2019, 07:36 UTC

The GBP/USD pair gets drifted above 1.3040 levels. The BoE’s last public conference tuned positive over the pair. The USD backed the upliftment. The Fed’s Interest Rates, significant event of the day.

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The GBP/USD pair opened during the Asian session near 1.3040 levels. Yesterday the pair massively moved upward with 103 levels from the 1.2940 levels. The pair is currently hovering around 1.3044 levels at 04.15 GMT.

The GBP/USD pair takeoff yesterday after following the BoE’s Ramsden speech and optimistic US events. The BoE’s Deputy Governor took serious notes on defining and supporting the MPC commitments. He supported the MPC’s vote over the holding of Interest Rates and waiting for the Britains economy to roll back again. Mr. Dave Ramsden highlighted the growth in EUR’s consumer confidence, Retail Sales, Business surveys. He even indicated the technological inducements for improvising economic productivity.

The US employment index QoQ, Redbook, the Housing market, and Texas Service Sector Outlook appeared bullish. The US economic events helped the denominator of the pair gain weight.

GBP/USD Significant Events

GBP Specific Events

08:30 GMT

April Markit Manufacturing PMI – The market this time expect a 2.1 percent drop in the figures, to the previous 55.1 points.

March Mortgage Approvals – Street analysts expect this housing market indicator to come around 64.850K in comparison to the last 64.337K.

March M4 Money Supply (Both YoY & MoM) – The consensus estimates the M4 MoM figures to come around a negative point one percent.

US Specific Events

Below listed are the US reports for April

18:00 GMT (High Volatility)

Fed Rates Decision – The Federal Reserve will publish the Interest Rates Decision. The market remains in-line with the previous numbers near 2.5 percent.

12:15 GMT

ADP Employment Change – This time, the market anticipates the US employment numbers to grow 51K from the last recorded 129K

13:45 GMT

Markit Manufacturing PMI – The street analysts take on a bearish stance over the figures, hoping it to come around 52.4 points.  

14:00 GMT

ISM Manufacturing PMI – The consensus estimates the figures to report 0.3 percent below the previous 55.3 points. Anyhow, the reports remain bullish as it is above 50 levels.

ISM Prices Paid – This time, the analysts expect the number to report around 55.1 points as to the previous 54.3 points.    

Technical Analysis

GBPUSD 1 Day 01 May 2019
GBPUSD 1 Day 01 May 2019

The GBP/USD pair was trading around 2.72 levels today. The 50-days SMA predicts a near term analysis to get bearish. Notably, the 100-days and 200-days SMA stayed 48 pips & 32 pips respectively above the 50-days SMA.  And in the longer term, the pair may showcase a bullish trend. The pair traded sustaining in the lower channel of the Bollinger Bands (BB). This position calls for a bearish stance. The Relative Strength Index (RSI) remained capped above 40 levels, revealing a decent investor interest.

About the Author

Nik has extensive experience as an Analyst, Trader and Financial Consultant for Global Capital Markets. His vision is to generate Highest, Consistent and Sustained Risk-Adjusted Returns for clients over long term basis and providing them world-class investment advisory services.

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