View Single Post
Old 29-05-2018, 05:58
AndreaFM AndreaFM is offline
Level III Lasers Member
Join Date: Dec 2017
Posts: 59
Default Re: Daily Market Analysis by ForexMart

GBP/USD Technical Analysis: May 28, 2018

The British pound against the U.S. dollar is moving higher towards the area of 1.3350 in a calm manner during the Monday session. Hence, we can expect a muted Monday session since the Memorial Day and the U.K. has also extended their Spring Bank holiday. Since most major pairs are not active at the beginning of the week, there is very low volatility for the week and less economic calendar for most of the week. The first data to be released will be on Wednesday, followed by Non-Farm Payrolls on Friday. Investors will monitor carefully for any signs that could induce volatility for the week.

The British major pair is trading close to the cyclical lows of 1.3305 at the last week of May after scheduled data for the week failed to support against the greenback. The macroeconomic of U.K. is influenced by two significant headlines including sluggish economic growth and decelerating inflation. The inflation target of 2 percent by the central bank is moving at a faster rate in line with the bank rate. This is due to the inflation-adjusted real wage amid the stale growth in the first quarter of the year. Both actions support the argument of the Bank of England following the bank rate with the forecast of Bank rate hike by 0.25% in February next year referring to the efficiency of money market rates.

Sluggish inflation of the Sterling is not so good as it gives them more time for the BoE before acting on the interest rates. The Bank of England Governor, Mark Carney, and the Monetary Policy Committee (MPC) external member, Gertjan Vlieghe, have the same sentiment when it comes to the monetary policy where they deem the interest rates to go up gradually in the next few years. The bearish trend resumed as exhibited on the daily chart after a period of consolidation at the beginning of the month, but has not yet found a bottom following the previous decline where the indicators showed moderate easing. We should anticipate the support level at 1.3280 / 1.3245 and resistance level at 1.3365 / 1.3400.

Daily Market Analysis by ForexMart-gbpusd28.png
Reply With Quote