GBP/USD FUNDAMENTAL FORECAST: MIXED
- BoE speeches in focus subsequent week.
- Latest UK financial information supportive of GBP upside.
- Russia/Ukraine pressures proceed to hold over markets.
CABLE FUNDAMENTAL BACKDROP
The week forward holds fairly a number of market transferring occasions from the pound perspective. A number of Financial institution of England MPC members are scheduled to ship speeches which might convey some worth volatility to GBP crosses. After constructive UK financial information this week together with employment, retail gross sales and CPI, we might see a extra hawkish view including to the latest pound rally.
Geopolitical tensions are nonetheless the primary market influencer driving world markets ebbing and flowing from danger on to danger off nearly day by day. Regardless of this, the conflict between greenback and pound fundamentals appears prone to neutralize one another however with the greenback being over prolonged (relative to the pound) to the brief facet, a reversal within the pattern might see GBP/USD transfer decrease.
GBP/USD TECHNICAL ANALYSIS
GBP/USD DAILY CHART
Chart ready by Warren Venketas, IG
GBP/USD worth motion has been testing channel resistance this week with no established push larger as of but. Subsequent week might spark the mandatory motivation wanted ought to BoE MPC officers add to the already aggressive outlook nevertheless, from a technical perspective higher lengthy wicks counsel worth rejection at latest swing highs (1.3644).A detailed beneath the 1.3600 psychological deal with might see bears re-enter, augmenting a draw back bias.
Key resistance ranges:
Key assist ranges:
IG CLIENT SENTIMENT: BULLISH
IG Shopper Sentiment Information (IGCS) exhibits retail merchants are at present marginally brief on GBP/USD, with 56% of merchants at present holding brief positions (as of this writing). At DailyFX we sometimes take a contrarian view to crowd sentiment leading to a bullish bias.
Contact and observe Warren on Twitter: @WVenketas