Daily Analysis For GBP/USD 24-05-2023

Daily Analysis For GBP/USD 24-05-2023

GBP/USD Analysis
GBP/USD
Economic Events and Scenario for GBP/USD
Economic Events: -
GMTEventImpactCurrency
00:00(Japan) Reuters Tankan IndexMediumJPY
01:00(Ecuador) The Battle of PichinchaNoneUSD
02:00(Australia) Westpac Leading Index MoMLowAUD
03:00(New Zealand) RBNZ Interest Rate DecisionMediumNZD
04:00(East Timor) Inflation Rate YoYLowUSD
04:00(East Timor) Inflation Rate MoMLowUSD
04:00(New Zealand) RBNZ Press ConferenceMediumNZD
06:00(Finland) Export Prices YoYLowEUR
06:00(Finland) Import Prices YoYLowEUR
06:00(Finland) PPI YoYLowEUR
06:00(Finland) Unemployment RateLowEUR
07:00(United Kingdom) Core Inflation Rate MoMLowGBP
07:00(United Kingdom) PPI Output YoYLowGBP
07:00(United Kingdom) PPI Input YoYLowGBP
07:00(United Kingdom) PPI Input MoMLowGBP
07:00(United Kingdom) PPI Output MoMLowGBP
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) PPI Core Output YoYLowGBP
07:00(United Kingdom) PPI Core Output MoMLowGBP
07:00(United Kingdom) Retail Price Index YoYLowGBP
07:00(United Kingdom) Retail Price Index MoMLowGBP
08:00(Euro Area) ECB Non-Monetary Policy MeetingMediumEUR
08:10(Australia) RBA Jacobs SpeechMediumAUD
09:00(Germany) Ifo ExpectationsLowEUR
09:00(Germany) Ifo Current ConditionsLowEUR
09:00(Germany) Ifo Business ClimateHighEUR
10:30(Germany) 15-Year Bund AuctionLowEUR
10:30(United Kingdom) BoE Gov Bailey SpeechMediumGBP
11:00(United Kingdom) CBI Industrial Trends OrdersMediumGBP
12:00(United States) MBA 30-Year Mortgage RateMediumUSD
12:00(United States) MBA Mortgage ApplicationsLowUSD
12:00(United States) MBA Mortgage Refinance IndexLowUSD
12:00(United States) MBA Mortgage Market IndexLowUSD
12:00(United States) MBA Purchase IndexLowUSD
14:00(Belgium) Business ConfidenceLowEUR
15:30(United States) EIA Refinery Crude Runs ChangeLowUSD
15:30(United States) EIA Crude Oil Stocks ChangeMediumUSD
15:30(United States) EIA Heating Oil Stocks ChangeLowUSD
15:30(United States) EIA Distillate Stocks ChangeLowUSD
15:30(United States) EIA Gasoline Production ChangeLowUSD
15:30(United States) EIA Crude Oil Imports ChangeLowUSD
15:30(United States) EIA Gasoline Stocks ChangeMediumUSD
15:30(United States) EIA Cushing Crude Oil Stocks ChangeLowUSD
15:30(United States) EIA Distillate Fuel Production ChangeLowUSD
16:30(United States) 17-Week Bill AuctionLowUSD
16:30(United States) 2-Year FRN AuctionLowUSD
17:00(Canada) 10-Year Bond AuctionLowCAD
17:10(United States) Fed Waller SpeechMediumUSD
18:00(United States) 5-Year Note AuctionLowUSD
18:45(Euro Area) ECB President Lagarde SpeechMediumEUR
19:00(United States) FOMC MinutesHighUSD
Today's Scenario: - GBP/USD registers its first daily ascent in three sessions, maintaining modest gains near 1.2420 ahead of crucial UK inflation data and a speech by Bank of England (BoE) Governor Andrew Bailey scheduled for Wednesday. This recovery comes after the Cable pair reached its lowest levels in a month, primarily driven by a retreat in the US Dollar and market consolidation ahead of the upcoming key data and events.
The US Dollar Index (DXY) is struggling to extend its two-day rally, hovering near 103.50, after reaching its highest levels in nine weeks. Notably, concerns over the US debt ceiling expiration, coupled with optimistic sentiments surrounding the UK Consumer Price Index (CPI) inflation data and Governor Bailey's speech at the BoE, are instilling hope among GBP/USD buyers.
Buy Scenario: - On the buying side of GBP/USD, if there is a recovery above the high on May 09 at 1.2640, it will drive the pair towards the resistance level at 1.2700, and potentially the high on April 26, 2022, at 1.2772. Till we do not advise to buy GBP/USD.
Sell Scenario: - GBP/USD is currently forming a Falling Wedge chart pattern on the two-hour timeframe. Market participants view each pullback as a selling opportunity, but there is a higher likelihood of a bullish reversal. The 50-period Exponential Moving Average (EMA) at 1.2440 is acting as a barrier for the Pound Sterling bulls.
In the meantime, the Relative Strength Index (RSI) (14) is oscillating within a range of 40.00-60.00. A decisive move is expected after the release of UK inflation data.
If the price falls below the low on May 19 at 1.2390, it will further strengthen US Dollar bulls, potentially pushing the Cable towards the low on April 10 at 1.2344, followed by the low on April 03 at 1.2275. Till then we do not advise selling GBP/USD.
Support and Resistance Level: -
SupportResistance
S1 1.2374-R1 1.2448
S2 1.2337-R2 1.2484
S3 1.2300-R3 1.2521

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