Sterling Settles at a Key Support

[ad_1]

The pair will likely keep falling, with the next reference level being at 1.2900.

Bearish View

  • Sell the GBP/USD pair and set a take-profit at 1.2900.
  • Add a stop-loss at 1.3080.
  • Timeline: 1 day.

Bullish View

  • Set a buy-stop at 1.3060 and a take-profit at 1.3150.
  • Add a stop-loss at 1.2950.

The GBP/USD remained under pressure ahead of the upcoming UK consumer and producer inflation data. It is trading at 1.300, where it has been in the past few days. This price is near the pair’s lowest level since 2020.

UK Inflation Data Ahead

The GBP/USD pair has been in a strong bearish trend in the past few weeks because of the overall strong US dollar. Investors have been worried about the rising bond yields, which have signaled that the Fed will be more hawkish in the coming months.

The US published strong inflation data on Wednesday. The headline CPI came in at 8.5%, which was slightly better than what analysts were expecting. Core CPI, which excludes volatile items like food and energy rose to 6.6%.

The next key catalyst for the GBP/USD pair will be the latest inflation data from the United Kingdom that are scheduled for Wednesday. Economists expect these numbers to show that the headline consumer price index rose from 6.2% in February to 6.7% in March. On a month-on-month basis, they expect that inflation fell from 0.8% to 0.7%. The US will publish the PPI numbers today.

Meanwhile, economists expect that the core CPI declined from 0.8% to 0.55 on a MoM basis. This decline is expected to have translate to a year-on-year gain of 5.4%. The UK and other European countries are expected to see more inflation because of the ongoing crisis in Ukraine.

These numbers will come two days after the UK published weak GDP numbers. The data showed that the economic growth was a bit limited in February. On Tuesday, numbers revealed that the unemployment rate dropped in February. Wage growth continued to lag inflation.

GBP/USD Forecast

The daily chart shows that the GBP/USD pair has been in a strong bearish trend for almost a year. It has declined by more than 8.68% from the highest point in April last year. And now, the price has found a strong support at around 1.300, which was the lowest level this year. It gas also moved below all moving averages and the Ichimoku cloud. Therefore, the pair will likely keep falling, with the next reference level being at 1.2900.

GBP/USD

[ad_2]

Leave a Reply

Your email address will not be published. Required fields are marked *

Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using xMetaMarkets services, please acknowledge all of the risks associated with trading.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions such as United States, Canada, Iran, Cuba, France, and some other regions, and is not intended for distribution to, or use by, any person in any countries or jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2018 - 2024 xMetaMarkets.com. All Rights Reserved.