Published on Mar 6, 2023

Daily Analysis For GBP/USD 06-03-2023

GBP/USD Analysis

Economic Events and Scenario for GBP/USD

Economic Events : -

GMT		Event	Currency
08:00	-	(United Kingdom) Myfxbook GBPUSD Sentiment	GBP
09:00	-	(United Kingdom) New Car Sales YoY	GBP
09:30	-	(United Kingdom) S&P Global/CIPS Construction PMI	GBP
14:00	-	(Ecuador) Inflation Rate YoY	USD
15:00	-	(United States) Factory Orders ex Transportation	USD
15:00	-	(United States) Factory Orders MoM	USD
16:30	-	(United States) 3-Month Bill Auction	USD
16:30	-	(United States) 6-Month Bill Auction	USD

Today's Scenario : - The GBP/USD currency pair is experiencing slight declines, hovering around the 1.2030-35 range during early Monday trading. This comes after the pair managed to post its first weekly gains in three weeks. However, the market is currently exhibiting a cautious sentiment, ahead of key upcoming events, and Brexit optimism seems to be fading.

The market is closely monitoring upcoming catalysts that could potentially impact the pair's movement. Traders are likely adopting a wait-and-see approach as they await important economic data releases or geopolitical events that could influence market sentiment.

Furthermore, optimism surrounding Brexit negotiations appears to be waning, which is likely contributing to the pair's mild losses. Market participants are closely monitoring any developments related to Brexit, and any negative news could potentially lead to a further decline in the pair.

Buy Scenario : - Alternatively, if the GBP/USD pair manages to surpass the 50-day moving average (DMA) resistance level, which is currently situated around 1.2140, it could potentially experience a rapid rise towards the mid-February swing high of approximately 1.2270.

It's important to note, however, that if the pair manages to trade above 1.2270, it could potentially open the door for further gains. This could enable buyers to set their sights on the horizontal resistance area that has been in place for the past 2.5 months, which is situated around 1.2445-50.

Market participants should keep a close eye on any developments that could potentially impact the pair's movement, including economic data releases or geopolitical events. Additionally, it's important to monitor price action and any potential retracements or reversals in trend. Till we do not advise to buy in GBP/USD.

Sell Scenario: - GBP/USD bulls appear to be taking a breather around the 1.2030 level. This follows the pair's largest weekly jump since mid-January.

Despite failing to extend the previous day's upside break of the one-month-old descending resistance line, which is now acting as support at around 1.2020, the pair has managed to remain above this level. Additionally, the MACD signals are bullish, and the RSI remains steady, which is providing hope to GBP/USD buyers.

The pair's successful trading beyond the 200-day moving average (DMA) is also contributing to the upside bias. The 200-DMA is currently providing support at around 1.1900.

Furthermore, there is an upward-sloping trend line from early January, which is acting as key support for the GBP/USD pair at around 1.1940. This adds additional strength to the pair's current bullish sentiment.

Market participants should closely monitor any upcoming economic data releases or geopolitical events that could potentially impact the pair's movement. Additionally, it's important to keep an eye on price action and any potential retracements or reversals in trend. Till then we do not advise selling GBP/USD.

Support and Resistance Level : -