Forex Market: GBP/USD daily trading outlook

Friday’s trade saw GBP/USD within the range of 1.4105-1.4249. The pair closed at 1.4227, rising 0.34% on a daily basis. It has been the 19th gain in the past 45 trading days and also a fifth consecutive one. The daily high has been the highest level since February 22nd, when a high of 1.4320 was registered. In weekly terms, GBP/USD surged 2.57% last week, while marking its first gain in the past three weeks and also the steepest one in at least a year.

At 7:37 GMT today GBP/USD was edging down 0.22% for the day to trade at 1.4196. The pair touched a daily low at 1.4192 at 7:15 GMT, undershooting the range support level (S3), and a daily high at 1.4226 during the early phase of the Asian trading session.

On Monday GBP/USD trading may be influenced by the following macroeconomic report as listed below.

Fundamentals

United States

Change in Consumer Lending

The money amounts, borrowed by consumers in the United States probably increased by USD 16.50 billion in January, according to market expectations, following a surge by USD 21.27 billion in December, or the largest increase since September 2015. Consumer lending in December was mostly supported by non-revolving credit (auto and student loans), which rose by USD 15.43 billion. In addition, revolving credit (credit cards mostly), grew by USD 5.84 billion in December.

Given the current state of the economy, a higher-than-expected amount borrowed is usually considered as dollar positive, as it implies a potential increase in consumer spending and accelerated growth, respectively. The Board of Governors of the Federal Reserve is to release the official numbers at 20:00 GMT.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for GBP/USD are presented as follows:

R1 – 1.4240
R2 – 1.4253
R3 (range resistance) – 1.4267
R4 (range breakout) – 1.4306

S1 – 1.4214
S2 – 1.4201
S3 (range support) – 1.4187
S4 (range breakout) – 1.4148

By using the traditional method of calculation, the weekly pivot levels for GBP/USD are presented as follows:

Central Pivot Point – 1.4103
R1 – 1.4373
R2 – 1.4519
R3 – 1.4789

S1 – 1.3957
S2 – 1.3687
S3 – 1.3541