GBP/USD Forex Signal Today 26/03: Bullish Outlook (Chart)
Bullish view
- Purchase the GBP/USD pair and set a take-profit at 1.3100.
- Add a stop-loss at 1.2850.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 1.2925 and a take revenue at 1.2850.
- Add a stop-loss at 1.3100.
The GBP/USD pair rose barely after the US revealed weak financial numbers on Tuesday. It rose from a low of 1.2887 on Monday to a excessive of 1.2945, as focus shifted to the upcoming UK shopper and producer inflation knowledge.
UK inflation knowledge forward
The GBP/USD pair rose after a report by the Convention Board confirmed that shopper confidence plunged in March. It moved from 100.1 in February to 92.9 in March, lacking the common analyst estimate of 94.2.
Shopper and enterprise confidence has dropped sharply previously few months as considerations about Donald Trump’s tariffs proceed. They’re frightened that these tariffs may have a significant influence on inflation. Traditionally, tariffs are normally handed on to shoppers, which explains why they’re seen as taxes.
Larger tariffs suggest that the Federal Reserve will keep their hawkish tone this yr. In an announcement on Monday, Raphael Bostic, a prime Fed official, hinted that the financial institution would ship only one charge reduce this yr.
The GBP/USD pair rose barely after the US launched the most recent housing knowledge. This report confirmed that the home worth index remained unchanged at 4.8% in January. One other knowledge revealed that the brand new house gross sales determine dropped from 664k in January to 676k in February.
The following key GBP/USD pair information to look at would be the upcoming shopper inflation knowledge. Economists count on the report to point out that the headline CPI dropped from 3.0% in January to 2.9% in February, whereas the core CPI slipped from 3.7% to three.6%.
An indication that UK inflation is easing can be a superb factor as it’s going to level to a possible charge reduce within the subsequent assembly. The Financial institution of England left rates of interest unchanged in its assembly final week.
GBP/USD technical evaluation
The GBP/USD pair has made a robust breakout previously few days. It was buying and selling at 1.2950, just a few factors above the 61.8% Fibonacci Retracement stage.
The pair has remained above the 50-day transferring common. Additionally it is between the Bollinger Bands indicator’s center and higher traces, whereas in style oscillators just like the RSI and the MACD have all pointed upward.
The pair can also be buying and selling on the sturdy pivot reverse level at 1.2940. Subsequently, the GBP/USD change charge will doubtless proceed rising as bulls goal the year-to-date excessive of 1.3016. A transfer above that stage will level to extra good points to 1.3100.
