Published on Apr 10, 2023

Daily Analysis For GBP/USD 10-04-2023

GBP/USD Analysis

Economic Events and Scenario for GBP/USD

Economic Events: -

GMT	Event	Impact	Currency
00:50	(Japan) Current Account	Medium	JPY
01:00	(Australia) Easter Monday	None	AUD
01:00	(Austria) Easter Monday	None	EUR
01:00	(Belgium) Easter Monday	None	EUR
01:00	(Euro Area) Easter Monday	None	EUR
01:00	(Finland) Easter Monday	None	EUR
01:00	(France) Easter Monday	None	EUR
01:00	(Germany) Easter Monday	None	EUR
01:00	(Ireland) Easter Monday	None	EUR
01:00	(Italy) Easter Monday	None	EUR
01:00	(Latvia) Easter Monday	None	EUR
01:00	(Lithuania) Easter Monday	None	EUR
01:00	(Luxembourg) Easter Monday	None	EUR
01:00	(Malta) Easter Monday	None	EUR
01:00	(Netherlands) Easter Monday	None	EUR
01:00	(New Zealand) Easter Monday	None	NZD
01:00	(Switzerland) Easter Monday	None	CHF
01:00	(United Kingdom) Easter Monday	None	GBP
06:00	(Estonia) Inflation Rate MoM	Low	EUR
06:00	(Estonia) Inflation Rate YoY	Low	EUR
06:00	(Estonia) Balance of Trade	Low	EUR
06:00	(Estonia) CPI	Low	EUR
06:00	(Japan) Consumer Confidence	High	JPY
07:00	(Japan) Eco Watchers Survey Current	Low	JPY
07:00	(Japan) Eco Watchers Survey Outlook	Low	JPY
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Greece) Inflation Rate MoM	Low	EUR
10:00	(Greece) Industrial Production YoY	Low	EUR
10:00	(Greece) Harmonised Inflation Rate YoY	Low	EUR
10:00	(Greece) Inflation Rate YoY	Low	EUR
10:00	(Malta) Balance of Trade	Low	EUR
10:30	(Cyprus) Balance of Trade	Low	EUR
11:00	(Portugal) Balance of Trade	Low	EUR
15:00	(United States) Wholesale Inventories MoM	Low	USD
16:00	(United States) Consumer Inflation Expectations	Low	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
21:15	(United States) Fed Williams Speech	Medium	USD

Today's Scenario: - The GBP/USD pair has declined to a new intraday low, continuing the previous week's retreat from its 10-month high. This downward trend is being driven by a risk-averse market sentiment and an increase in bets on the US Federal Reserve's hawkish stance, which has caused the US dollar to rebound. It is worth noting that these events are occurring during the Easter Monday holiday.

Investors will be closely monitoring Bank of England Governor Bailey's speech as major central banks appear to be losing their hawkish bias. This speech could provide insights into the Bank of England's stance on monetary policy and its potential impact on the GBP/USD pair.

Buy Scenario: - if the GBP/USD pair makes a decisive move above Friday's high at 1.2453, it could reach the April 04 high at 1.2525. A break above this level would drive the pair towards the round-level resistance at 1.2600.

In summary, the GBP/USD pair is expected to continue its downward correction towards the lower portion of the Rising Channel chart pattern. The asset's momentum may shift if it breaks below the March 23 high of 1.2343, or if it makes a decisive move above Friday's high at 1.2453. Till then we do not advise to buy GBP/USD.

Sell Scenario: - The GBP/USD pair is expected to continue its downward correction towards the lower portion of the Rising Channel chart pattern. The Pound Sterling's attempts to rise are being restricted by the 20-period Exponential Moving Average (EMA) at 1.2436.

The Relative Strength Index (RSI) (14) is currently defending its downside at around 40.00. If the RSI breaks below this level, it would trigger a bearish momentum.

To experience a downside movement, the GBP/USD pair needs to break below the Rising Channel pattern, which occurred above the March 23 high of 1.2343. This would expose the asset to the round-level support of 1.2300, followed by the March 14 high of around 1.2200. Till then we do not advise selling GBP/USD.

Support and Resistance Level: -