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GBP/USD Daily Price Forecast – The Cable Heads the Psychological Mark of 1.1300 levels Ahead of US Bearish-expected Feb Housing Price Index

Nikhil Khandelwal

The GBP/USD pair started the day near 1.2980 levels. The Pound weakened yesterday amid negative sentiment revolving the Brexit. Meantime, rumors suggested that the PM May might again lose with no majority ahead of the EU elections.

Today, the Parliamentarians have resumed office after the Easter Recess. The PM and the Labour Party MPs plan to line-up for the day to hold resumption talks. This report develops an optimistic tone among investors. The cable continued yesterday’s fall but remained in the range of 1.2987 levels.

On the release front, today, there is hardly any significant data release for the UK and the US. The pair is bound to get affected from whatsoever news drops on Brexit. But few US-based calendared events would impact the chances of trading over the GBP/USD.

GBP/USD Influential Events

(US-based events)

13:00 GMT

The US Federal Housing Finance Agency will release the MoM Housing Price Index for February. The index gives an overview of the activities of the housing market, and it is volatile towards the currency pair. The consensus estimates take on a bearish stance in the figures to reach near 0.3 percent.

14:00 GMT

The US Census Bureau will release the MoM New Home Sales for March. The index would assess the activities of the housing market. The street analysts, however, stay quite bearish on the upcoming numbers. They anticipate the figures to come around 170 K lower than the previous 0.667 million.

If the Home Sales statistics miss the estimates, then the cable may experience an upward drift.

Technical Analysis

GBPUSD 120 Min 23 April 2019

Since April 8, the GBP/USD maintained hard to remain within the range of 1.2976 and 1.3132 levels. At recent, the pair trades near the lower vicinity of the specified range. Most of the significant Simple Moving Averages (SMA) especially computed for the 100-days, and 200-days remained above the pair. This position sets in a bearish trend for the cable. However, if it breaches further down, then the next support line stays at 1.2770 levels. In the meanwhile, the pair has shown some strong upward momentum in the RSI graph. Things remain uncertain from the technical side. The next movements of the pair will weigh more on the fundamental side of the pound.

This article was originally posted on FX Empire