GBP/USD Daily Price Forecast – The Cable Upshots 35pips Ahead Of UK Mar CPI Data & BoE’s Carney SpeechOn the broader chart, the cable appeared to rebound from the lowest vicinity near 1.3036 levels. Brexit cross-party talks get underway slow progress.
After initiating sliding since April 15, the cable finally uplifted with some firm movements. The GBP/USD had remained kind of apathetic in the last couple of sessions amid the lack of Brexit headlines. Today, the pair caught some fresh bids shifting it 35 pips up, marking new daily high at 1.3067 levels. The sudden upsurge gets discounted to the optimism developed around the upcoming UK March Retail Price Index, CPI, and PPI figures.
In the meanwhile, there remains a lack of updates from the Brexit front as the House got adjourned on Easter Recess. However, the May-Corbyn talks over the Customs Union issue show slight progress which minorly upticks the cable.
Key GBP/USD Events:
08:30 GMT (High & Mid volatile)
The National Statistics will publish the following March indexes for the UK:
- The Consumer Price Index (CPI) (Both YoY & MoM): The consensus is bullish towards YoY with 2.0 percent while they expect lower MoM index with 0.3 percent than previous 0.5 percent.
- The Core CPI YoY: The index will consider only those items which are stable in price, unlike energy & food. The analysts are positive in their estimates to come around 1.9 percent to the prior.
- The Retail Price Index (Both YoY & MoM): The market analysts remain bearish over the YoY & MoM index to occur at 2.1 and 0.2 percent respectively.
- Producer Price Index (PPI) Input (YoY): The experts are expecting an increase in the numbers to reach 3.9 percent than former 3.7 percent.
- PPI Core Output (YoY): The analysts stay aligned to the previous index 2.2 percent.
12:30 GMT (Mid Volatile)
13:00 GMT (High Volatile)
The Governor of the Bank of England and Chairman of the Monetary Policy Committee, Mark Carney is expected to deliver a speech. He would emphasize strategies to mitigate climate change impacts on the economy.
The GBP/USD showed some bearish sentiment from the SMA perspective. Although the pair moved hand-in-hand with 21-day SMA, other significant 100-day and 200-day SMA lied well above it. Also, the Relative Strength Index (RSI) positioned near 44.31 levels. Somehow, on the back of strong fundamentals if it uptrends then robust 1.3105 level awaits it. On the downside, the cable may have to face the solid support lines near 1.2987 and 1.3011 levels.