GBP/USD: Weekly Forecast 2Nd April - 8Th April
(MENAFN- Daily Forex) The gbp/usd will enter this week of trading near the 1.23300 mark, which is an improved value compared to last Monday's start near the 1.22200 ratios.
The GBP/USD produced a high around the 1.24250 mark on early Friday, only to falter lower before going into the weekend. However, the selloff before the weekend may have been the product of profit taking by financial houses if they were participating with speculative buying positions for clients and cashing out winnings.Behavioral Sentiment is Calmer and the GBP/USD may enjoy the Fruits The ability to move towards the 1.24000 level and above late last week easily surpassed the previous week's highs of nearly 1.23400 on the 22nd of March. And this past Friday's close was slightly below the higher level produced on the 22nd, clearly showing an incremental upwards climb is indicating hints of bullish momentum sustaining which may catch the attention of more speculative buyers. Less negative news regarding the European corporate banking sector last week, certainly helped global financial houses remain within a more tranquil trading landscape. The Forex market was calm and this likely helped the GBP/USD. This coming Friday the U.S Non-Farm Employment Change and Average Hourly Earnings statistics will be published; this will certainly affect the GBP/USD.
Support Levels should be monitored as the GBP/USD begins Trading this Week Having finished the week with a rather curious selloff, but able to maintain rather intriguing technical support levels the GBP/USD will get the attention of traders this week.
The jobs data and inflation numbers which will come from the U.S. late this week, will be added onto the slightly weaker than anticipated growth numbers published last Thursday in the U.S., and will certainly fuel volatility in the GBP/USD. Because of the Good Friday holiday coming on the 7th, day traders should be aware that transactional volumes may become lighter than normal late this week and could spark volatility . However, if current support ratios prove durable, this may be a sign that some financial houses are leaning towards a weaker USD and this may spur on additional GBP/USD buying.
The U.S. Fed is expected to potentially raise interest rates in early May, but many financial institutions may believe the U.S. central bank will stop raising afterward, setting the table for a more speculative GBP/USD.GBP/USD Weekly Outlook: The speculative price range for GBP/USD is 1.22575 to 1.24210 The GBP/USD is again within plain sight of values seen in the middle of January and early February this year.
Yes, the GBP/USD was trading at a low of nearly 1.18000 on the 7th and 8th of March showing volatility has thrived. The financial markets have experienced a wide assault of impetus via U.S federal reserve rhetoric and complicated U.S economic numbers the past two months, but the ability of the GBP/USD to incrementally move higher the past few weeks cannot be dismissed. The reversal off of highs produced on early Friday is a warning sign that resistance above remains, but if current support near the 1.23100 to 1.22900 levels remains durable to start this week, this could continue to perk up the notion the bullish trend of the GBP/USD may have additional room to flourish . Speculators should be careful this week and remember that both important data and a big holiday are coming this Friday which will combine to create fireworks for the GBP/USD and broad Forex market. Traders who want to continue to pursue upwards momentum cannot be blamed, but their risk-taking tools should be used. The notion that speculative forces may buy the GBP/USD early this week while anticipating weaker-than-expected U.S. data lurks, but traders who are more conservative and want to wait for momentum to gather pace should remain conservative . If the GBP/USD remains above 1.23000 early this week, this could set the table for another attempt at the 1.23800 to 1.24000 levels.
Due to the U.S. jobs numbers and the Good Friday holiday at the end of this week, traders are advised to be extremely careful.
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