Daily Analysis For GBP/USD 20-04-2023

Daily Analysis For GBP/USD 20-04-2023

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
02:15(China) Loan Prime Rate 1YMediumCNY
02:15(China) Loan Prime Rate 5YMediumCNY
04:35(Japan) 20-Year JGB AuctionLowJPY
05:30(Japan) Tertiary Industry Index MoMLowJPY
05:30(Netherlands) Unemployment RateMediumEUR
05:30(Netherlands) Consumer ConfidenceMediumEUR
06:00(Estonia) PPI YoYLowEUR
06:00(Estonia) PPI MoMLowEUR
07:00(Germany) PPI YoYLowEUR
07:00(Germany) PPI MoMMediumEUR
07:45(France) Business Climate IndicatorLowEUR
07:45(France) Business ConfidenceMediumEUR
09:00(Greece) Current AccountLowEUR
09:00(Spain) Balance of TradeMediumEUR
09:40(Spain) 7-Year Obligacion AuctionLowEUR
09:40(Spain) 10-Year Obligacion AuctionLowEUR
10:00(China) FDI (YTD) YoYMediumCNY
10:00(Euro Area) Balance of TradeMediumEUR
10:00(Belgium) Consumer ConfidenceLowEUR
10:00(France) 5-Year BTAN AuctionLowEUR
10:00(France) 3-Year BTAN AuctionLowEUR
11:00(France) 10-Year Index-Linked OAT AuctionLowEUR
11:00(Luxembourg) Unemployment RateLowEUR
11:00(Portugal) PPI YoYLowEUR
11:00(Portugal) PPI MoMLowEUR
12:30(Euro Area) ECB Monetary Policy Meeting AccountsMediumEUR
13:30(United States) Philadelphia Fed Manufacturing IndexMediumUSD
13:30(United States) Philly Fed Business ConditionsLowUSD
13:30(United States) Philly Fed EmploymentLowUSD
13:30(United States) Philly Fed CAPEX IndexLowUSD
13:30(United States) Philly Fed Prices PaidLowUSD
13:30(United States) Philly Fed New OrdersLowUSD
13:30(United States) Jobless Claims 4-week AverageHighUSD
13:30(United States) Continuing Jobless ClaimsHighUSD
13:30(United States) Initial Jobless ClaimsHighUSD
15:00(Euro Area) Consumer ConfidenceMediumEUR
15:00(United States) Existing Home Sales MoMHighUSD
15:00(United States) Existing Home SalesHighUSD
15:00(United States) CB Leading Index MoMLowUSD
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
17:00(United States) Fed Waller SpeechMediumUSD
18:00(United States) 5-Year TIPS AuctionLowUSD
20:00(United States) Fed Bowman SpeechMediumUSD
21:15(Euro Area) ECB Schnabel SpeechLowEUR
Today's Scenario: - In the Asian session, the GBP/USD pair is trading within a narrow range around 1.2440, with investors divided on whether to support the Pound Sterling or the US Dollar. Both the Federal Reserve and the Bank of England (BoE) are expected to announce a rate hike to continue curbing persistent inflation in their respective economies.
The S&P500 closed Wednesday's session with nominal losses following Tesla's missed margins due to price cuts. However, production guidance remains steady, indicating caution in the overall market sentiment. The US Dollar Index (DXY) is facing obstacles while attempting to reclaim the immediate resistance of 102.00. The USD Index experienced a significant correction after testing a weekly high of 102.20, as the release of the Fed's Beige Book failed to fuel fresh buying momentum.
Buy Scenario: - if the GBP/USD buyers manage to surpass the support-turned-resistance level of 1.2470, they may regain control. In this scenario, the 1.2500 round figure and the monthly high of approximately 1.2550 should draw the market's attention before directing the Cable pair buyers toward the May 2022 high of roughly 1.2665.
In conclusion, unless the GBP/USD pair surpasses the 1.2470 level, it is likely to remain downbeat. Till we do not advise to buy GBP/USD.
Sell Scenario: - The GBP/USD pair is experiencing minor losses and is currently hovering around 1.2430 during the Asian session on Thursday. The Cable pair's bearish stance is reinforced by its inability to surpass the previous support line that extends from late March.
Furthermore, the sluggish MACD signals and the steady RSI (14) line add to the downside bias. However, the short-term downside of the GBP/USD pair is restricted by the 100-SMA and a one-month-old resistance line, which are positioned near 1.2400 and 1.2370, respectively.
It's worth noting that a short-term horizontal line located around 1.2350 is significant in determining the GBP/USD pair's decline towards the monthly low of 1.2275. Subsequently, the market's focus may shift to the late March swing low near 1.2190 and the 1.2000 round figure. Till then we do not advise selling GBP/USD.
Support and Resistance Level: -
SupportResistance
S1 1.2397-R1 1.2478
S2 1.2354-R2 1.2517
S3 1.2315-R3 1.2560

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