Daily Analysis For GBP/USD  15-05-2023

Daily Analysis For GBP/USD 15-05-2023

GBP/USD Analysis
GBP/USD
Economic Events and Scenario for GBP/USD
Economic Events: -
GMTEventImpactCurrency
00:50(Japan) PPI YoYLowJPY
00:50(Japan) PPI MoMLowJPY
01:00(Euro Area) Eurogroup MeetingMediumEUR
01:01(Ireland) Construction PMILowEUR
02:30(Australia) Building Permits MoMLowAUD
02:30(Australia) Private House Approvals MoMLowAUD
02:30(Australia) Building Permits YoYLowAUD
02:30(China) PBoC 1-Year MLF AnnouncementLowCNY
04:45(Japan) 5-Year JGB AuctionLowJPY
06:00(Estonia) Unemployment RateLowEUR
06:00(Finland) CPILowEUR
06:00(Finland) Inflation Rate YoYLowEUR
06:00(Finland) Inflation Rate MoMLowEUR
07:00(Germany) Wholesale Prices MoMMediumEUR
07:00(Germany) Wholesale Prices YoYMediumEUR
07:00(Japan) Machine Tool Orders YoYLowJPY
07:30(Switzerland) Producer & Import Prices YoYLowCHF
07:30(Switzerland) Producer & Import Prices MoMLowCHF
08:00(China) FDI (YTD) YoYMediumCNY
08:00(Lithuania) Current AccountLowEUR
08:00(Slovakia) Inflation Rate YoYLowEUR
08:00(Slovakia) Core Inflation Rate YoYLowEUR
08:00(Slovakia) Core Inflation Rate MoMLowEUR
08:00(Slovakia) CPILowEUR
08:00(Slovakia) Inflation Rate MoMLowEUR
09:00(Australia) Myfxbook AUDUSD SentimentMediumAUD
09:00(Switzerland) Myfxbook USDCHF SentimentMediumCHF
09:00(Japan) Myfxbook USDJPY SentimentMediumJPY
09:00(European Union) Myfxbook EURUSD SentimentMediumEUR
09:00(United Kingdom) Myfxbook GBPUSD SentimentMediumGBP
09:00(Canada) Myfxbook USDCAD SentimentMediumCAD
09:00(New Zealand) Myfxbook NZDUSD SentimentMediumNZD
10:00(Belgium) Construction Output YoYLowEUR
10:00(Euro Area) Industrial Production MoMMediumEUR
10:00(Euro Area) Industrial Production YoYLowEUR
10:30(Germany) 12-Month Bubill AuctionLowEUR
11:00(Spain) Consumer ConfidenceMediumEUR
11:00(Latvia) Current AccountLowEUR
11:00(Ireland) Balance of TradeLowEUR
13:15(Canada) Housing StartsMediumCAD
13:30(Canada) Wholesale Sales MoMLowCAD
13:30(United States) NY Empire State Manufacturing IndexMediumUSD
13:45(United States) Fed Bostic SpeechMediumUSD
14:00(Belgium) Balance of TradeLowEUR
14:00(France) 3-Month BTF AuctionLowEUR
14:00(France) 12-Month BTF AuctionLowEUR
14:00(France) 6-Month BTF AuctionLowEUR
14:15(United States) Fed Kashkari SpeechMediumUSD
15:00(Canada) Financial System SurveyMediumCAD
16:30(United States) 3-Month Bill AuctionLowUSD
16:30(United States) 6-Month Bill AuctionLowUSD
17:30(United States) Fed Barkin SpeechMediumUSD
21:00(United States) Foreign Bond InvestmentLowUSD
21:00(United States) Overall Net Capital FlowsLowUSD
21:00(United States) Net Long-term TIC FlowsMediumUSD
22:00(United States) Fed Cook SpeechMediumUSD

Today's Scenario: - During early Monday trading, GBP/USD is facing continued pressure around the mid-1.2400s, following its largest weekly loss since late January. As a result, the Cable pair remains a focus for bearish sentiment as it remains below key support lines, which now act as resistance levels, with no price-positive oscillators to provide support.

Buy Scenario: - Immediate recovery for the GBP/USD pair is limited by the convergence of the 21-DMA and an upward-sloping trendline from March 24, currently around 1.2510.
Beyond that, the key level to watch is the support-turned-resistance line that has been in place for two months, near 1.2600. A break above this level could potentially allow Pound Sterling bulls to regain control. Till we do not advise to buy GBP/USD.

Sell Scenario: - The bearish signals from the MACD indicator, along with a stable RSI (14), give the advantage to GBP/USD bears to extend the previous week's downside break of the support lines that have been in place since March. The fact that the quote continues to trade below the 21-day moving average (DMA) also adds to the bearish outlook.
Consequently, the Pound Sterling is likely to experience further declines towards the support of the 50-DMA, located near 1.2375.
However, there is a challenging obstacle for GBP/USD bears at the horizontal area around 1.2340, which has been a significant level since late March. If this level is breached, it could trigger a move towards the 1.2200 support zone, which includes the high from early March and the low from late March. Till then we do not advise selling GBP/USD.

Support and Resistance Level: -
SupportResistance
S1 1.2413-R1 1.2513
S2 1.2376-R2 1.2577
S3 1.2312-R3 1.2614

Discussion

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