GBPUSD Technical Analysis - Awaiting a breakout

[Forex News]

USD

• The Fed left interest rates unchanged asexpected with basically no change to the statement. The Dot Plot still showedthree rate cuts for 2024 and the economic projections were upgraded with growthand inflation higher and the unemployment rate lower.
• Fed Chair Powellmaintained a neutral stance as he said that it was premature to react to therecent inflation data given possible bumps on the way to their 2% target.
• The US CPI andthe US PPI beatexpectations for the second consecutive month.
• The US Jobless Claims beatexpectations.
• The latest US ManufacturingPMIbeat expectations while the Services PMI missed slightly. Both the measuresremain in expansion though.
• The US ConsumerConfidence missed expectations although the labourmarket details improved.
• The market expects the first rate cut in June.

GBP

• The BoE left interest rates unchanged as expected but with Haskel andMann this time voting for a hold instead of a hike.
• The employment report missed expectations with an uptickin the unemployment rate and an easing in wage growth.
• The UK CPI missed expectations across the board but withServices inflation remaining sticky, which continues to support the BoE’spatient stance.
• The latest UK PMIs showed the Services PMI missing expectationsslightly and the Manufacturing PMI beating.
• The market expects the first ratecut in June.

GBPUSD Technical Analysis –Daily Timeframe

On the daily chart, we can see that GBPUSD has beenconsolidating around the 1.26 handle as the market awaits key catalysts nextweek to push it in either direction. Today it’s the Good Friday holiday, soliquidity will be thinner, and we can expect mostly a rangebound price actionuntil the US PCE release which will likely move the market.

GBPUSD Technical Analysis –4 hour Timeframe

On the 4 hour chart, we can see that the price is nowranging between the 1.2580 support and the1.2660 resistance. There’s not much do here other than “playing the range” bybuying at support and selling at resistance. The buyers will want to see theprice breaking higher to increase the bullish bets into the 1.28 resistance,while the sellers will want to see the price breaking lower to pile in moreaggressively for a drop into the 1.25 handle.

GBPUSD TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we can see moreclosely the rangebound price action between the key levels with the 1.2612level acting as kind of barometer for the sentiment with the market being morebullish above the level and more bearish below it.

Upcoming Events

Today we conclude the week with the US PCE and FedChair Powell.

This article was written by FL Contributors at www.forexlive.com.

More...