Published on Mar 23, 2023

Daily Analysis For GBP/USD 23-03-2023

GBP/USD Analysis

Economic Events and Scenario for GBP/USD

Economic Events: -

GMT	Event	Impact	Currency
07:00	(Lithuania) Industrial Production YoY	Low	EUR
07:00	(Lithuania) Industrial Production MoM	Low	EUR
08:00	(European Union) European Council Meeting	Medium	EUR
08:30	(Switzerland) SNB Interest Rate Decision	Medium	CHF
09:00	(Greece) Current Account	Low	EUR
09:30	(Slovenia) Consumer Confidence	Low	EUR
11:30	(Germany) Bundesbank Balz Speech	Low	EUR
12:00	(United Kingdom) BoE Interest Rate Decision	High	GBP
12:00	(United Kingdom) MPC Meeting Minutes	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Hike	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Unchanged	Medium	GBP
12:00	(United Kingdom) BoE MPC Vote Cut	Medium	GBP
12:00	(United States) Building Permits	Medium	USD
12:00	(United States) Building Permits MoM	Low	USD
12:00	(Germany) undesbank Wuermeling Speech	Low	EUR
12:30	(United States) Current Account	Medium	USD
12:30	(United States) Jobless Claims 4-week Average	High	USD
12:30	(United States) Continuing Jobless Claims	High	USD
12:30	(United States) Initial Jobless Claims	High	USD
12:30	(United States) Chicago Fed National Activity Index	Medium	USD
14:00	(United States) New Home Sales MoM	High	USD
14:00	(United States) New Home Sales	High	USD
14:30	(United States) EIA Natural Gas Stocks Change	Low	USD
15:00	(Euro Area) Consumer Confidence	Medium	EUR
15:00	(United States) Kansas Fed Composite Index	Low	USD
15:00	(United States) Kansas Fed Manufacturing Index	Low	USD
15:00	(United Kingdom) BoE L Mann Speech	Medium	GBP
15:00	(Euro Area) ECB Lane Speech	Low	EUR
15:30	(United States) 8-Week Bill Auction	Low	USD
15:30	(United States) 4-Week Bill Auction	Low	USD
17:00	(United States) 10-Year TIPS Auction	Low	USD
22:00	(Australia) Judo Bank Manufacturing PMI	High	AUD
22:00	(Australia) Judo Bank Services PMI	High	AUD
22:00	(Australia) Judo Bank Composite PMI	Low	AUD
23:30	(Japan) Inflation Rate Ex-Food and Energy YoY	Low	JPY
23:30	(Japan) Inflation Rate YoY	High	JPY
23:30	(Japan) Inflation Rate MoM	Low	JPY
23:30	(Japan) Core Inflation Rate YoY	Medium	JPY
23:50	(Japan) Foreign Bond Investment	Low	JPY
23:50	(Japan) Stock Investment by Foreigners	Low	JPY

Today's Scenario: - The GBP/USD pair has reached a renewed intraday high near 1.2310 as it moves towards the seven-week high that was achieved in the previous session. The bullish trend remains intact as investors wait for the Bank of England's (BoE) monetary policy announcements. The strong UK inflation and the success of UK Prime Minister Sunak's Brexit negotiations have added strength to the Cable pair's upward movement.

Buy Scenario: - The GBP/USD pair is currently facing its first resistance level at 1.2300, which coincides with the midpoint of the ascending regression channel that originated in early March. If the pair manages to break above this level, the next resistance level could be seen at 1.2330, which was a former support level and now acts as static resistance from January. Beyond that, the upper limit of the ascending channel at 1.2370 could be the next target for the pair. Till we do not advise to buy in GBP/USD.

Sell Scenario: - On the downside, the GBP/USD pair's key support level is at 1.2230, which is the lower limit of the ascending channel and coincides with the 20-period Simple Moving Average (SMA). If the pair closes below this level on a four-hour timeframe, it could experience further losses towards 1.2200, which is a psychological support level, and 1.2160, which is the 50-period SMA. Till then we do not advise selling GBP/USD.

Support and Resistance Level: -