UK Markets closed

GBP/USD Daily Price Forecast – The Major 200-days SMA Traded Well Above the Cable, Developing Long-term Uptrend

Nikhil Khandelwal

On the Easter day morning, the GBP/USD was hovering near the lowest vicinity near 1.1300 levels. When seeing the month’s chart, the cable seems to take rounds around the month-low of 1.2992 levels currently. The pair is expected to remain silent until the end of the day due to lack of supporting events.

On the Brexit front, certain negative rumors keep the cable grappled for a pullback. The Sunday Time’s had reported that Sir Graham Brady, the top conservative leader will ask UK PM to step down. At this time, May’s resignation can emit crucial waves affecting the whole Brexit process.

As the EU elections are approaching dates, the Labour Party Deputy Leader Tom Watson fetches support for a second referendum. This pessimistic news, along with the previous May’s resignation-related rumor, strongly motivates the cable bears. In the meanwhile, the cable investors await for April 23, when the  House of Commons will resume office.

At the time of writing this article (10:41 GMT), the GBP/USD was trading near 1.2999 levels (almost 1.1300 levels).

GBP/USD Impactful Events

At 12:30 GMT, the Federal Bank of Chicago will release the March Chicago Fed National Activity Index (CFNAI). The index recorded a negative 0.29 points for February.

At 14:00 GMT, the National Association of Realtors will publish the March MoM Existing Homes Sales. Notably, the expansion of the housing market will strengthen the USD while a shrinkage of the market may weaken it. This time, the consensus estimate a 210K decrease in the Existing Home Sales reports.

Somehow, if the US reports miss estimates, then it could lead to the upliftment in the GBP/USD.

Technical Analysis

GBPUSD 60 Min 22 April 2019

The primary Simple Moving Average (SMA) computed for 200-days, and 100-days stood well above the GBP/USD strengthening the bulls. On the longer term, investors can expect some strong upward movements breaching the sound 1.3122 resistance level. Over the last couple of days, the cable continued to drift in the lower region of the Bollinger bands. This position of the cable develops some insights for a short-term bear trend. The Relative Strength Index (RSI) stabilized near 50 levels after rebounding from the lower 27 levels.

This article was originally posted on FX Empire

More From FXEMPIRE: