Forex Market: GBP/USD daily outlook

During yesterday’s trading session GBP/USD traded within the range of 1.6556-1.6647 and closed at 1.6607.

At 8:22 GMT today GBP/USD was gaining 0.10% for the day to trade at 1.6626. The pair touched a daily high at 1.6629 at 8:08 GMT.

Fundamental view

United Kingdom

United Kingdoms final annualized Gross Domestic Product probably expanded 2.7% during the last quarter of 2013, according to the median forecast by analysts, or matching the second (revised) GDP estimate, which was announced on February 26th. A better than anticipated GDP figure would bolster demand for the sterling. The official report is to be published at 9:30 GMT.

Total business investments in the United Kingdom, an indicator based on a quarterly survey on capital expenditures of 32 000 companies in countrys private sector, probably increased 8.5% during Q4 2013 compared to Q4 2012. This final data would meet the preliminary result, reported on February 26th.

The deficit on nations current account probably shrank to 13.8 billion GBP during the fourth quarter of 2013 from a deficit of 20.7 billion GBP in Q3. The current account is one of the three key components to comprise UKs balance of payments. A lesser deficit than expected would provide a boost to the pound. The official figure is scheduled for release also at 9:30 GMT.

United States

Personal income in the United States probably increased at a monthly pace of 0.3% during February, or at the same pace as a month ago. Personal spending probably rose 0.3% as well last month, following another 0.4% increase in January. The official data is expected at 12:30 GMT.

At 13:55 GMT Thomson Reuters in cooperation with the University of Michigan will probably report that the final reading of their gauge of consumer confidence (based on 100% of results in the survey) probably was 80.5 this month, as the preliminary reading was announced at 79.9 on March 14th.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/USD manages to breach the first resistance level at 1.6651, it will probably continue up to test 1.6694. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6742.

If GBP/USD manages to breach the first key support at 1.6560, it will probably continue to slide and test 1.6512. With this second key support broken, the movement to the downside will probably continue to 1.6469.