Forex Market: GBP/USD daily forecast

During yesterday’s trading session GBP/USD traded within the range of 1.6766-1.6811 and closed at 1.6808.

At 06:47 GMT today GBP/USD was losing 0.01% for the day to trade at 1.6802. The pair touched a daily low at 1.6802 at 06:46 GMT.

Fundamental view

United States

The monthly survey by Thomson Reuters and the University of Michigan may show that the final reading of the US consumer confidence improved to 83.0 in April from a preliminary reading of 82.6. The survey encompasses about 500 respondents throughout the country. The index is comprised by two major components, a gauge of current conditions and a gauge of expectations. The current conditions index is based on the answers to two standard questions, while the index of expectations is based on three standard questions. All five questions have an equal weight in determining the value of the overall index.

In case the gauge of consumer sentiment showed a larger improvement than projected, this would boost demand for the dollar. The official reading is due out at 13:55 GMT.

United Kingdom

Retail Sales in the UK probably fell by 0.4% in March, according to the median analysts’ estimates. In February retail sales rose by 1.7%.
The indicator measures the change in the volume of sales made by retailers in the UK. The information is derived from a monthly survey among major retailers. Higher volumes of retail sales mean greater consumer demand, higher production and economic growth. This is the percentage change in the index from the previous month.

On year-over-year basis, retail sales probably rose by 3.8% last month, following a 3.7% increase in February.

The Office for National Statistics is scheduled to release an official report at 8:30 GMT. Higher-than-expected readings will certainly heighten the appeal of the pound.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/USD manages to breach the first resistance level at 1.6824, it will probably continue up to test 1.6840. In case the second key resistance is broken, the pair will probably attempt to advance to 1.6869.

If GBP/USD manages to breach the first key support at 1.6779, it will probably continue to slide and test 1.6750. With this second key support broken, the movement to the downside will probably continue to 1.6734.