Weekly Technical Outlook: GPB/USD ; Market Forecasts for April 10th – April 14th

• Resistance level 1.2509
• Pivot Level 1.2506
• Support Level 1.22388, 1.2166 and 1.2039

Technical Analysis

Daily bias in GBP/USD remains bearish with 1.2509 resistances intact. Deeper decline is still expected for the pair as long as resistances holds the area.

The price action stays below resistances so far at this point and closes below these levels. Such decline is viewed as a correction.

Thus, we’d expect resistance to hold the area and the pair remains bearish for this week indicating a bearish reversal.

This outlook is expected to continue with the downside bias with the price action signaling a two bar reversal bearish movement with rejection at resistance area closed below the trend line.

With the stochastic oscillator currently at 38.0 levels, the pair closed below the rejection of the trend line and clearly indicated a trend reversal shifting the momentum.

Current development suggests that the medium term downside is expected to be further low and the focus shall be at 1.2238. Any break here should make lower lows with 1.2166 levels.

Economic

• Producer Price Index, PPI Core Output, Consumer Price Index
• BRC Like-For-Like Retail Sales, Claimant Count Change
• Fed’s Yellen Speech, FOMC Member Kashkari Speech, EIA Crude Oil Stocks change,
• Initial Jobless Claims, Michigan Consumer Sentiment Index, Retail Sales
• Consumer Price Index, Baker Hughes US Oil Rig Count

Area of Interest

• Strong resistance at 1.2509 area and closed below resistance levels.
• Bearish reversal strongly closing below the rejection of trend line with two bar signal.
• Price action closed below trend line and oscillator below 38.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame resistance levels.

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