Daily Analysis For GBP/USD 18-05-2023

Daily Analysis For GBP/USD 18-05-2023

GBP/USD Analysis
GBP/USD
Economic Events and Scenario for GBP/USD
Economic Events: -
GMTEventImpactCurrency
00:50(Japan) Foreign Bond InvestmentLowJPY
00:50(Japan) Stock Investment by ForeignersLowJPY
00:50(Japan) Imports YoYLowJPY
00:50(Japan) Exports YoYMediumJPY
00:50(Japan) Balance of TradeHighJPY
01:00(Austria) Ascension DayNoneEUR
01:00(Belgium) Ascension DayNoneEUR
01:00(Euro Area) Ascension DayNoneEUR
01:00(Finland) Ascension DayNoneEUR
01:00(France) Ascension DayNoneEUR
01:00(Germany) Ascension DayNoneEUR
01:00(Luxembourg) Ascension DayNoneEUR
01:00(Netherlands) Ascension DayNoneEUR
01:00(Switzerland) Ascension DayNoneCHF
02:30(Australia) Part Time Employment ChgMediumAUD
02:30(Australia) Participation RateLowAUD
02:30(Australia) Full Time Employment ChgMediumAUD
02:30(Australia) Unemployment RateHighAUD
02:30(Australia) Employment ChangeHighAUD
04:00(East Timor) Inflation Rate YoYLowUSD
04:00(East Timor) Inflation Rate MoMLowUSD
04:35(Japan) 52-Week Bill AuctionLowJPY
07:30(Euro Area) ECB Guindos SpeechHighEUR
09:00(Spain) Balance of TradeMediumEUR
09:40(Spain) Obligacion AuctionLowEUR
09:40(Spain) 5-Year Bonos AuctionLowEUR
10:00(Euro Area) ECB President Lagarde SpeechMediumEUR
11:00(Portugal) PPI MoMLowEUR
11:00(Portugal) PPI YoYLowEUR
11:00(Slovakia) Unemployment RateLowEUR
11:30(Portugal) Private Consumption YoYLowEUR
11:30(Portugal) Economic Activity YoYLowEUR
13:30(United States) Philadelphia Fed Manufacturing IndexMediumUSD
13:30(United States) Philly Fed Business ConditionsLowUSD
13:30(United States) Philly Fed CAPEX IndexLowUSD
13:30(United States) Philly Fed EmploymentLowUSD
13:30(United States) Philly Fed New OrdersLowUSD
13:30(United States) Philly Fed Prices PaidLowUSD
13:30(United States) Initial Jobless ClaimsHighUSD
13:30(United States) Jobless Claims 4-week AverageHighUSD
13:30(United States) Continuing Jobless ClaimsHighUSD
13:30(Canada) New Housing Price Index YoYMediumCAD
13:30(Canada) New Housing Price Index MoMMediumCAD
14:05(United States) Fed Jefferson SpeechMediumUSD
14:30(United States) Fed Barr TestimonyMediumUSD
15:00(United States) Existing Home Sales MoMHighUSD
15:00(United States) Existing Home SalesHighUSD
15:00(United States) CB Leading Index MoMLowUSD
15:00(United States) Fed Logan SpeechMediumUSD
15:30(United States) EIA Natural Gas Stocks ChangeLowUSD
16:30(United States) 8-Week Bill AuctionLowUSD
16:30(United States) 4-Week Bill AuctionLowUSD
18:00(United States) 10-Year TIPS AuctionLowUSD
20:00(El Salvador) Balance of TradeLowUSD
23:45(New Zealand) Balance of TradeMediumNZD
23:45(New Zealand) ExportsLowNZD
23:45(New Zealand) ImportsLowNZD
Today's Scenario: - During the Tokyo session, the GBP/USD pair is experiencing a fluctuating movement below the key psychological resistance level of 1.2500. The Cable is struggling to establish a clear direction due to the absence of significant catalysts. Meanwhile, the USD Index is attempting to protect its downside around 1.2480, but a downward bias is favored as the White House has agreed to increase the US borrowing limit in exchange for the President's spending proposals.
Buy Scenario: - A recovery in the GBP/USD pair, buyers need to successfully break the resistance confluence at 1.2490. Afterward, they may face challenges from previous tops marked in mid-April and the 23.6% Fibonacci retracement level, which are around 1.2545 and 1.2585, respectively, before potentially reaching the recent multi-day peak at 1.2680. Till we do not advise to buy GBP/USD.
Sell Scenario: - Despite experiencing mild losses around 1.2480 early on Thursday, the GBP/USD pair has been in a downtrend for three consecutive days, erasing the gains made after bouncing back from a three-week low.
The Pound Sterling has reversed course from the convergence of the 200-day simple moving average (SMA) and a downward-sloping resistance line that has been in place since May 10, with the latest level around 1.2490. The pullback is supported by the stable RSI (14) line and sluggish MACD signals.
Consequently, the Cable pair seems poised to decline towards the 61.8% Fibonacci retracement level of its upside movement between April and May, which is approximately 1.2430. However, there is a strong support line that has been in place for a month near 1.2425, making it challenging for GBP/USD bears to break through.
If the GBP/USD price drops below 1.2425, there is a possibility of a swift decline towards a horizontal support zone that has been active for five weeks, located around 1.2355-1.2345.Till then we do not advise selling GBP/USD.
Support and Resistance Level: -
SupportResistance
S1 1.2436-R1 1.2524
S2 1.2384-R2 1.2562
S3 1.2347-R3 1.2613

Discussion

default man
Explore
Trade360 Review 2023: Account Options, Trading Hours, Security Measures, Pros and Cons

Trade360 Review 2023: Account Options, T...

Finexo Review 2023: Account Types, Spreads, Customer Support and Expert Analysis

Finexo Review 2023: Account Types, Sprea...

eToro Review 2023: Trading Platforms, Instrument Variety Pros and Cons

eToro Review 2023: Trading Platforms, I...

Comprehensive Review of FXTrading.com: Pros and Cons of a Leading Trading Platform

Comprehensive Review of FXTrading.com: P...

Sky Alliance Markets Review 2023: Pros, Cons, and Trading Features

Sky Alliance Markets Review 2023: Pros, ...

;