Forex Market: GBP/USD daily outlook

During yesterday’s trading session GBP/USD traded within the range of 1.6466-1.6536 and closed at 1.6498.

At 8:18 GMT today GBP/USD was losing 0.01% for the day to trade at 1.6497. The pair touched a daily low at 1.6482 at 7:45 GMT.

Fundamental view

The annualized index of consumer prices in the United Kingdom probably slowed down to 1.7% in February, according to the median estimate by experts, from a rate of 1.9% in January. In monthly terms, consumer prices probably rose 0.5% last month, following a 0.6% drop in January. In case consumer inflation accelerates more than anticipated, this would provide support to British pound.

The annualized core consumer price index (CPI), which excludes volatile components such as food, energy, alcohol and tobacco, probably was at 1.6% in February, the same as in January.

At the same time, the number of approved loans for house purchase in the country probably increased to 50 000 during January from 49 972 in the preceding month. The British Bankers Association will release the official figure at 9:30 GMT.

Home values in 20 large cities throughout the United States probably rose at an annualized rate of 13.34% during January, preliminary estimates showed. In December home prices climbed at a rate of 13.42%. S&P/Case-Shiller will release the official rate at 13:00 GMT.

Confidence among US consumers probably improved in March. The corresponding index probably rose to a reading of 78.6 from 78.1 in February. The Conference Board research group is to announce the results from its survey, encompassing over 5 000 households in the country, at 14:00 GMT. If the gauge of confidence shows a better than expected performance, this would certainly heighten the appeal of the US dollar.

Also at 14:00 GMT United States Census Bureau is to announce the results from the Survey of Construction, regarding sales of new, privately-owned residential buildings currently authorized by a building permit or started in areas not requiring a building permit in February. New home sales in the country probably dropped to 0.445 million last month from 0.468 million during January.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/USD manages to breach the first resistance level at 1.6534, it will probably continue up to test 1.6570. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6604.

If GBP/USD manages to breach the first key support at 1.6464, it will probably continue to slide and test 1.6430. With this second key support broken, the movement to the downside will probably continue to 1.6394.