GBP/USD Forex Signal Today 31/03: More Upside (Chart)
Bullish view
- Purchase the GBP/USD pair and set a take-profit at 1.3015.
- Add a stop-loss at 1.2850.
- Timeline: 1-2 days.
Bearish view
- Set a sell-stop at 1.2935 and a take-profit at 1.2850.
- Add a stop-loss at 1.3015.
The GBP/USD exchange rate remained tight vary close to its November highs after a sequence of blended financial numbers from the UK. It was buying and selling at 1.2940 on Monday, down barely from this yr’s excessive of 1.3016.
US Liberation Day tariffs forward
The GBP/USD pair retreated barely afte the UK launched encouraging inflation knowledge on Wednsday. Knowledge by the Workplace of Nationwide Statistics (ONS) confirmed that the headline Shopper Worth Index (CPI) slipped from 2.9% in January to 2.8% in February. Core inflation moved from 3.6% to three.5%, remaining a lot increased than the Financial institution of England’s goal of two.0%.
On the optimistic aspect, there are indicators that UK’s client spending rose in the course of the month, serving to to help the financial system. The headline retail gross sales rose by 2.2% in February after rising by 0.6% a month earlier. Core retail gross sales, which excludes the unstable meals and vitality costs additionally by 2.2%,
One other report confirmed that the UK’s financial system expanded barely within the fourth quarter. It grew by 1.5% in This fall after rising by 1.4% 1 / 4 earlier. These numbers got here per week after the Financial institution of England left rates of interest unchanged in its assembly in February.
The GBP/USD pair additionally reacted to the Federal Reserve’s favourite inflation knowledge. The PCE and core PCE figures remained above 2.5% in February, an indication that inflation continues to be excessive within the US.
Trying forward, S&P International will publish the manufacturing PMI numbers from the UK and the US on Tuesday. These numbers will present extra data on whether or not the sector continued rising in March.
An important catalyst for the GBP/USD pair might be Trump’s Liberation Day tariffs on Wednesday. Trump has pledged to impose massive tariffs on items from different international locations, together with the UK. It’s unclear the dimensions of the tariffs that might be carried out on the UK, a rustic that has a commerce deficit with the UK.
GBP/USD technical evaluation
The GBP/USD pair bottomed at 1.2095 earlier this yr after which bounced again to a excessive of 1.2940. It has moved barely above the 61.8% Fibonacci Retracement degree at 1.2925.
The pair has shaped a golden cross sample because the 50-day and 200-day shifting averages have crossed one another. This sample is without doubt one of the most bullish indicators in technical evaluation.
The pair has additionally shaped a bullish pennant sample, comprising a protracted vertical line and a symmetrical triangle. The 2 strains of this triangle are about to converge, which is able to result in extra upside, doubtlessly to 1.3100.
