GBP Trading Outlook
The Sterling (GBP) the GBP/USD fell below 1.6200 in risk off trade. Weak economic data did not help with April Construction PMI falling to 55.8 vs. 56.7 previously. GBP/JPY fell below Y130 and is continuing to challenge the bullish outlook for the major. EUR/GBP is remaining pressured down at 0.8125. Looking ahead, May ECB Rate meeting forecast at 1.0% vs. 1.0% previously. Also ECB President Draghi Speaks.
The Sterling (GBP) The GBP/USD reacted to the USD buying with a brief test under 1.6200 but has been very resilient lately and quickly returned to the upside bias. The EUR/GBP is getting attention as a quiet range trading option. Many traders are looking to sell on the rally close or above 0.8200 for an eventual move to 0.8000. Looking ahead, April German Unemployment Change forecast at -10k vs. -18k previously.
The Sterling (GBP) the GBP/USD tested 1.6300 before reversing on profit taking down to 1.6220 as the recent rally ran out of steam. Such pullbacks help a rally technically as overbought signals are reduced and allow buyers to get in at cheaper levels. Looking ahead, April UK PMI manufacturing index forecast at 53 vs. 53.4 previously.
The Sterling (GBP) the GBP/USD surged higher towards 1.6300 in the US session with another week of gains adding to the uptrend technically. The EUR/GBP is easing towards 0.8100 at a slow but steady pace. Also ahead, March EU Retail Prices forecast at 0.5% vs. 1.7% previously.
Go to The Sterling (GBP) Archive