GBP/USD Daily Price Forecast – The Cable Under Tension Amid Brextension Concerns

The Cable started off the Friday morning session after the release of the March Irish Consumer Confidence Index which was above the consensus estimate. GBP/USD was seen to create new resistance and support levels during the early part of the day showing clear signs of an uptrend. The release of positive UK February National Housing Prices both MoM and YoY at 07:00 GMT further added fuel to the upward movement. The pair rallied from 1.3054 level at 00:00 GMT reaching 1.3085 level at 07:20 GMT. From that high cliff edge, the GBP/USD pair plummeted heavily even crossing 1.3013 level on Brexit Extension Uncertainties. Both Sterling Pound and Euro are under high pressure ahead of Brexit Voting scheduled today at 13:30 GMT.

At the time of writing this article (08:49 GMT), the cable was trading at 1.3030 level.

Upcoming Two Key UK Events That Will Drastically Move The Pair Post-Event Today:

By 09:30 GMT, (High Volatile Event)

National Statistics will broadcast the UK Gross Development Product (GDP) figures for the fourth fiscal quarter. GDP numbers give a broad idea about the economic status of the country. The Consensus estimates take an in-line stance over the UK Q4 GDP and expect the figures to come around 0.2 percent. GDP numbers amid Brexit chaos will act as a significant support system for the currency pair.

By 13:30 GMT, (High Volatile Event)

After the disappointing last voting sessions conducted in the UK House of Commons, the EU had asked the UK officials to keep another voting programme today. The EU wants the UK to get complete support and approval on at least on one part of the May’s deal for a Brexit – “Withdrawal Agreement”. The other part of the PM’s deal focuses on future relations between the UK and the EU.

EU added in their statement that if MPs approve the Withdrawal Agreement in today’s voting session, then the UK will receive an extra extension to wrap up things until May 22. The EU have elections after May 22, and they want to focus entirely on their internal matters during such high time. Hence, the odds of hard Brexit increases multifold if things go wrong. The cable is expected to face a massive stroke following the vote result announcement. So keep a close eye on this upcoming massive weighted UK Brexit event.

Technical Overview

From the technical front, the Simple Moving Averages (SMA) for the major days lie above the GBP/USD pair. This indicator develops a bearish stance on the pair. The pair had followed some good upward movement before the mid-day plunge. Moving Average Convergence Divergence (MACD) shows signals of upliftment again as the 12-day average and 26-day average difference are approaching for an intersection. The GBP/USD had created a new high resistance level of 1.3084 earlier the day.