GBP/USD: the US dollar is aiming for a yearly high
Current trend
The GBP/USD pair fluctuates within the narrow channel 1.3100–1.3160, currently around 1.3070. Although business activity in the UK picked up sharply in March as restrictions related to the coronavirus pandemic were lifted, optimism in business circles fell to a 17-month low for the coming months as the military conflict in Ukraine and global economic uncertainty weighed on consumer spending.
Meanwhile, thousands of UK citizens took to the streets to protest the soaring electricity and gasoline prices. If earlier an ordinary English family spent about 1K pounds a year on electricity and gas, now this figure has grown to 1,971K pounds, and this year it may even reach 2,600K pounds. Despite the rise in prices, the March service business index rose to 62.6 from 60.5 in February, while the composite index rose to 60.9 from 59.9 a month earlier.
The USD Index, despite pressure, tried to break the year’s high of 99.300. The US dollar exchange rate is supported artificially since there are no economic or political drivers for such dynamics. The data on the index of purchasing managers, published yesterday, was worse than expected, amounting to 58.3 instead of 58.4 points predicted by analysts. Composite PMI from Markit was 57.7 points, which is also below the forecast of 58.5 points.
Support and resistance
The asset is moving within the global downward channel and is approaching the support line, around which there is the year’s low of 1.3000. Technical indicators maintain a sell signal: indicator Alligator’s EMA fluctuations range is still quite wide, and the histogram of the AO oscillator forms alternating bars in the sell zone.
Resistance levels: 1.3260, 1.3627.
Support levels: 1.3000, 1.2800.
The GBP/USD pair fluctuates within the narrow channel 1.3100–1.3160, currently around 1.3070. Although business activity in the UK picked up sharply in March as restrictions related to the coronavirus pandemic were lifted, optimism in business circles fell to a 17-month low for the coming months as the military conflict in Ukraine and global economic uncertainty weighed on consumer spending.
Meanwhile, thousands of UK citizens took to the streets to protest the soaring electricity and gasoline prices. If earlier an ordinary English family spent about 1K pounds a year on electricity and gas, now this figure has grown to 1,971K pounds, and this year it may even reach 2,600K pounds. Despite the rise in prices, the March service business index rose to 62.6 from 60.5 in February, while the composite index rose to 60.9 from 59.9 a month earlier.
The USD Index, despite pressure, tried to break the year’s high of 99.300. The US dollar exchange rate is supported artificially since there are no economic or political drivers for such dynamics. The data on the index of purchasing managers, published yesterday, was worse than expected, amounting to 58.3 instead of 58.4 points predicted by analysts. Composite PMI from Markit was 57.7 points, which is also below the forecast of 58.5 points.
Support and resistance
The asset is moving within the global downward channel and is approaching the support line, around which there is the year’s low of 1.3000. Technical indicators maintain a sell signal: indicator Alligator’s EMA fluctuations range is still quite wide, and the histogram of the AO oscillator forms alternating bars in the sell zone.
Resistance levels: 1.3260, 1.3627.
Support levels: 1.3000, 1.2800.