ritish Pound Rises Ahead of US Economic Data Release, Set to Continue Steady Climb

My FX List
April 25, 2023

Table of Contents

Bullish View

Take Profit: 1.260
Stop Loss: 1.2355
Timeline: 1-2 days

Bearish View

Sell Stop: 1.2422
Take Profit: 1.2300
Stop Loss: 1.2550

The British pound has been making steady gains over the past few days ahead of significant economic data from the United States. The GBP/USD pair has been on an upward trend, reaching a high of 1.2477 on April 14, which is about 1% higher than its lowest point last week. The Federal Housing Enterprise is set to publish the housing numbers for February, with economists predicting a decline of 0.2% in the house price index due to rising interest rates. Additionally, new home sales, building permits, and housing starts numbers will be released, with analysts expecting a drop in new home sales and building permits in March.

The GBP/USD pair will also react to the upcoming US consumer confidence data, which is expected to show a drop in consumer confidence due to elevated inflation levels. The Federal Reserve has committed to being data-dependent when making its interest rate decision, making these numbers critical. On the other hand, the UK will only release data on public-sector spending, with economists predicting that the government borrowed 22.9 billion pounds in March, which is higher than the previous month’s 15.8 billion pounds.

From a technical perspective, the British pound has continued to make significant gains, with the pair moving slightly above the important resistance level at 1.2467. The MACD has moved above the neutral point, while the MFI has moved to the neutral point, indicating that the pair will likely continue to rise towards the year-to-date high of 1.2540 and the next key level at 1.2600.

Author My FX List