GBP/USD Daily Price Forecast – Fingers Crossed Ahead Of EU Summit On Brexit

Nikhil Khandelwal
Updated

On the Wednesday opening bell, the cable was trading at 1.3053 level where it remained under consolidation phase for a quite while. The GBP/USD  later jumped to 1.3074 levels creating fresh highs for the day.

The overall market sentiment remains low in the middle of fears revolving around the EU-US Trade War. The GBP/USD saw north on the back of positive Brexit updates. EU President Donald Tusk recently suggested providing the UK a year of flexible Brextension.

All the eyes are on the event calendar for this Super Wednesday. GBP/USD is expected to show some high volatile movements during the day.

Key GBP/USD Influencing Events For Today:

08:30 GMT

The National Statistics will release the following reports:

  • UK February YoY & MoM Manufacturing Production figures. As manufacturing forms a significant part of the UK GDP, this index is highly crucial. The consensus estimates a negative 0.7 percent before the previous negative 1.1 percent for the YoY figures, while the market expects a decrease of 0.6 percent in the MoM numbers.

  • UK February MoM Industrial figures. A change in the industrial production numbers gets linked to the growth in the manufacturing sector of the region. The Street Analysts expect a decline of 0.5 percent in the Industrial production numbers for February.

  • February MoM Gross Development Product (GDP) for the UK. An excellent positive change in the GDP figures signifies a growing economy. The Analysts expect the UK GDP to remain unchanged this time, while it was 0.5 percent up for January.

12:30 GMT (Highly Volatile Event)

The US Department of Labor will publish the Consumer Price Index (CPI) ex Food & Energy (YoY) & (MoM) for March month. Volatile products such as food and energy are excluded from computation to get an accurate CPI reading. The Market analysts expect the YoY CPI to come in-line with the previous 2.1 percent while the MoM CPI figures are expected to record 0.1 percent up this time.

16:00 GMT

UK PM Theresa May had applied a request to the EU for an additional delay in the Brexit until June 30. EU Officials have set up this EU summit to respond to May’s appeal.

Technical Analysis

GBPUSD 15 Min 10 April 2019
GBPUSD 15 Min 10 April 2019

The Cable looks like to follow through an uptrend. The GBP/USD was trading in the lower vicinity of the Bollinger Bands (BB) in the early session. Later the pair crossed the center line jumping into the upper bound range of the BB showing signs of a trend reversal. The pair had small hits over the upper bound taking it outside the BB showing strong momentum. The cable traded above the 21-day Simple Moving Average (SMA), 55-day SMA, 100-day SMA, and 200-day SMA displaying a sound bullish stance.

This article was originally posted on FX Empire

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