Published on Mar 27, 2023

Daily Analysis For GBP/USD 27-03-2023

GBP/USD Analysis

Economic Events and Scenario for GBP/USD

Economic Events: -

GMT	Event	Impact	Currency
2:30	(China) Industrial Profits (YTD) YoY	Low	CNY
6:00	(Finland) Consumer Confidence	Low	EUR
6:00	(Finland) Business Confidence	Low	EUR
6:00	(Japan) Leading Economic Index	Low	JPY
6:00	(Japan) Coincident Index	Low	JPY
9:00	(Germany) Ifo Current Conditions	Low	EUR
9:00	(Germany) Ifo Business Climate	High	EUR
9:00	(Germany) Ifo Expectations	Low	EUR
9:00	(Euro Area) Loans to Companies YoY	Low	EUR
9:00	(Euro Area) M3 Money Supply YoY	Low	EUR
9:00	(Euro Area) Loans to Households YoY	Low	EUR
9:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
9:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
9:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
9:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
9:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
9:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
9:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
11:00	(United Kingdom) CBI Distributive Trades	Medium	GBP
11:00	(France) Jobseekers Total	Low	EUR
11:00	(France) Unemployment Benefit Claims	Medium	EUR
11:00	(Greece) Total Credit YoY	Low	EUR
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:30	(United States) Dallas Fed Manufacturing Index	Medium	USD
15:40	(Euro Area) ECB Elderson Speech	Medium	EUR
16:00	(Euro Area) ECB Schnabel Speech	Medium	EUR
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
18:00	(United States) 2-Year Note Auction	Low	USD
18:00	(United Kingdom) BoE Gov Bailey Speech	Medium	GBP
22:00	(United States) Fed Jefferson Speech	Medium	USD

Today's Scenario: - The GBP/USD pair is currently showing slight gains around the mid-1.2200s, as it defends its previous day's rebound from a key moving average during Monday's slow trading session. The pair has crossed a descending resistance line that is two days old, which is now acting as immediate support at around 1.2240.

Buy Scenario: - During Monday's slow trading session, the GBP/USD pair showed mild gains around the mid-1.2200s, as it defended its previous day's rebound from a key moving average. Additionally, the pair has crossed a two-day-old descending resistance line, which is now acting as immediate support at around 1.2240.

It is worth noting that the bullish MACD signals and gradually recovering RSI (14) (which is not yet overbought) also support the latest rebound in the Cable pair, indicating further advances in the quote.

However, the immediate upside of the GBP/USD price is limited to around the 1.2260 level, which is restricted by the 100-Hour Moving Average (HMA).

If the pair's price manages to break through this level, the previous support line from March 08 (which is currently around 1.2320) may act as the last defense for GBP/USD sellers. A break below this support line could pave the way for the pair's run-up towards the multiple tops marked during December 2022 and January 2023, near 1.2445-50. Till we do not advise to buy in GBP/USD.

Sell Scenario: - Conversely, if there are pullback moves, they need to stay below the resistance-turned-support level of 1.2240 to attract intraday sellers. However, even if the price falls below this level, the 200-HMA level of 1.2200 and the latest swing low of around 1.2190 can present a challenge to the GBP/USD bears before they can take control. Till then we do not advise selling GBP/USD.

Support and Resistance Level: -