Daily Analysis For GBP/USD 22-03-2023

Daily Analysis For GBP/USD 22-03-2023

GBP/USD Analysis
GBP/USD
Economic Events and Scenario for GBP/USD
Economic Events: -
GMTEventImpactCurrency
00:00(Australia) Westpac Leading Index MoMLowAUD
05:30(Netherlands) Consumer ConfidenceMediumEUR
07:00(United Kingdom) PPI Core Output YoYLowGBP
07:00(United Kingdom) PPI Core Output MoMLowGBP
07:00(United Kingdom) Core Inflation Rate MoMLowGBP
07:00(United Kingdom) PPI Output MoMLowGBP
07:00(United Kingdom) PPI Input MoMLowGBP
07:00(United Kingdom) PPI Output YoYLowGBP
07:00(United Kingdom) PPI Input YoYLowGBP
07:00(United Kingdom) Inflation Rate MoMMediumGBP
07:00(United Kingdom) Core Inflation Rate YoYMediumGBP
07:00(United Kingdom) Inflation Rate YoYHighGBP
07:00(United Kingdom) Retail Price Index YoYLowGBP
07:00(United Kingdom) Retail Price Index MoMLowGBP
08:00(Slovakia) Current AccountLowEUR
08:00(Switzerland) Current AccountMediumCHF
08:45(Euro Area) ECB President Lagarde SpeechMediumEUR
09:00(Euro Area) Current AccountLowEUR
09:00(Euro Area) Current Account s.aLowEUR
09:30(Euro Area) ECB Lane SpeechMediumEUR
10:00(Belgium) Consumer ConfidenceLowEUR
10:00(Italy) Current AccountLowEUR
10:00(United Kingdom) 5-Year Treasury Gilt AuctionLowGBP
10:30(Germany) 10-Year Bund AuctionMediumEUR
11:00(Ireland) Wholesale Prices MoMLowEUR
11:00(Ireland) Wholesale Prices YoYLowEUR
11:00(United Kingdom) CBI Industrial Trends OrdersMediumGBP
11:00(United States) MBA 30-Year Mortgage RateMediumUSD
11:00(United States) MBA Mortgage ApplicationsLowUSD
11:00(United States) MBA Mortgage Market IndexLowUSD
11:00(United States) MBA Mortgage Refinance IndexLowUSD
11:00(United States) MBA Purchase IndexLowUSD
11:30(Portugal) Current AccountLowEUR
12:05(Germany) Bundesbank Mauderer SpeechLowEUR
12:30(Canada) New Housing Price Index MoMMediumCAD
12:30(Canada) New Housing Price Index YoYMediumCAD
13:45(Euro Area) ECB Panetta SpeechLowEUR
14:00(Kosovo) Balance of TradeLowEUR
14:30(United States) EIA Refinery Crude Runs ChangeLowUSD
14:30(United States) EIA Crude Oil Stocks ChangeMediumUSD
14:30(United States) EIA Heating Oil Stocks ChangeLowUSD
14:30(United States) EIA Gasoline Production ChangeLowUSD
14:30(United States) EIA Distillate Stocks ChangeLowUSD
14:30(United States) EIA Crude Oil Imports ChangeLowUSD
14:30(United States) EIA Gasoline Stocks ChangeMediumUSD
14:30(United States) EIA Cushing Crude Oil Stocks ChangeLowUSD
14:30(United States) EIA Distillate Fuel Production ChangeLowUSD
15:30(United States) 17-Week Bill AuctionLowUSD
17:00(Germany) Bundesbank Nagel SpeechLowEUR
17:30(Canada) BoC Summary of DeliberationsMediumCAD
18:00(United States) Fed Interest Rate DecisionHighUSD
18:00(United States) FOMC Economic ProjectionsHighUSD
18:00(United States) Interest Rate Projection - LongerMediumUSD
18:00(United States) Interest Rate Projection - CurrentMediumUSD
18:00(United States) Interest Rate Projection - 2nd YrMediumUSD
18:00(United States) Interest Rate Projection - 1st YrMediumUSD
18:30(United States) Fed Press ConferenceHighUSD
23:00(Japan) Reuters Tankan IndexMediumJPY
Today's Scenario: - GBP/USD is currently maintaining a higher position above 1.2200 in early European trading. The US dollar is facing some setbacks due to an overall positive market sentiment as the Federal Reserve's policy decision looms. At the moment, GBP/USD traders are eagerly awaiting the release of UK inflation data, which may provide some new insights into the Bank of England's potential interest rate hike trajectory.
Buy Scenario: - For the Pound to make gains against the US dollar, it must avoid falling below the pivot level of $1.2226. If it can do so, the next target would be the First Major Resistance Level (R1) at $1.2273, followed by Tuesday's high of $1.22827. A sustained breakout would require continued support from market risk sentiment and Brexit.
If the Pound experiences a significant rally, it may test the Second Major Resistance Level (R2) at $1.2330 and resistance at $1.2350. The Third Major Resistance Level is located at $1.2434. Till we do not advise to buy in GBP/USD.
Sell Scenario: - If the Pound falls below the pivot level, it could trigger a decline towards the First Major Support Level (S1) at $1.2169. However, it is unlikely to fall below $1.21 without significant selling pressure from the Federal Reserve. The Second Major Support Level (S2) at $1.2122 should provide some downside support, while the Third Major Support Level (S3) is located at $1.2018.
Looking at the 4-hourly chart and the Exponential Moving Averages (EMAs), the signals are bullish. The GBP/USD is trading above the 50-day EMA, which is currently at $1.21418. The 50-day EMA has widened from the 200-day EMA, while the 100-day EMA has moved further away from the 200-day EMA, indicating bullish sentiment.
If the GBP/USD remains above the First Major Support Level (S1) and the 50-day EMA ($1.21418), it may break through the First Major Resistance Level (R1) at $1.2273 and target the Second Major Resistance Level (R2) at $1.2330 and resistance at $1.2350. However, a drop below the First Major Support Level (S1) would give the bears an opportunity to test the 50-day EMA ($1.21418) and the Second Major Support Level (S2) at $1.2122. If it falls below the 50-day EMA, it would be a bearish signal. Till then we do not advise selling GBP/USD.
Support and Resistance Level: -
SupportResistance
S1 1.2170-R1 1.2274
S2 1.2122-R2 1.2330
S3 1.2066-R3 1.2378

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