Forex Market: GBP/USD daily trading outlook

Yesterday’s trade saw GBP/USD within the range of 1.4188-1.4398. The pair closed at 1.4223, losing 1.00% on a daily basis. It has been the 31st drop in the past 57 trading days, a second consecutive one and also the steepest one since March 15th, when the pair fell 1.04%. The daily low has been the lowest level since March 16th, when a low of 1.4051 was registered. GBP/USD has trimmed its advance to 1.90% so far during the current month.

At 7:16 GMT today GBP/USD was edging down 0.33% for the day to trade at 1.4176. The pair touched a daily low at 1.4171 at 7:05 GMT, undershooting the range support level (S3), and a daily high at 1.4227 during the early phase of the Asian trading session.

On Wednesday GBP/USD trading may be influenced by the following macroeconomic report listed below.

Fundamentals

United States

New Home Sales

Sales of new single-family homes probably rose 3.1% to the seasonally adjusted annual rate of 510 000 in February, according to market expectations, from 494 000 reported in January. The latter has been the lowest sales level since October 2015, when a figure of 480 000 was reported. Sales in the West went down 32.1%, while those in the Midwest were 5.9% lower. On the other hand, sales in the South rose 1.8%, while those in the Northeast were 3.4% higher from a month ago.

The median sales price of new houses sold went down as low as USD 278 800 in January, after being at USD 295 800 in the preceding month. The average sales price went up to USD 365 700 in January from USD 347 700 in December. At the end of the month, the seasonally adjusted estimate of new houses for sale was 238 000, up from 233 000 at the end of December. It represents a supply of 5.8 months at the current sales rate, according to the report by the US Census Bureau.

In case the index showed a better-than-anticipated performance, this would strongly support demand for the US dollar. The Census Bureau is to report the official figure at 14:00 GMT.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:

R1 – 1.4242
R2 – 1.4262
R3 (range resistance) – 1.4281
R4 (range breakout) – 1.4339

S1 – 1.4204
S2 – 1.4185
S3 (range support) – 1.4165
S4 (range breakout) – 1.4108

By using the traditional method of calculation, the weekly pivot levels for GBP/USD are presented as follows:

Central Pivot Point – 1.4350
R1 – 1.4648
R2 – 1.4816
R3 – 1.5114

S1 – 1.4182
S2 – 1.3884
S3 – 1.3716