GBP/USD: the dollar storms the 100.000 mark in the USD Index
Current trend
The British pound is trading within a local downtrend against the US dollar, around 1.3025. Investors fear that the current decline in the GBP/USD pair is just the beginning of a long-term negative dynamics of quotations since the real fall in the asset may begin today when macroeconomic data on the UK economy is published.
Thus, according to analysts, GDP growth for February may slow down to 0.3% from 0.8% a month earlier and may drop to 9.5% YoY from 10.0% last month. Industrial production for the same period, according to preliminary estimates, will rise by 0.3%, well below 0.7% a month earlier. Similar data is expected from the manufacturing sector, which will correct only by 0.3% instead of 0.8%, shown in January.
Despite the pressure exerted on it, the US dollar index is trying to consolidate above the psychological mark of 100 points. During Friday's trading, it managed to test this mark, after which a sharp decline followed, and now the quotes are in the 99.800 area. Probably, today there will be another attempt to grow against the background of the expected speeches by members of the US Federal Reserve Open Market Committee, Raphael Bostic and Michelle Bowman, regarding forecasts for adjusting monetary policy parameters soon.
Support and resistance
The asset moves within the global downward channel, approaching the support line at 1.3000, which coincides with the year's low. Technical indicators keep a stable sell signal: indicator Alligator's EMA fluctuations range is quite wide, and the histogram of the AO oscillator moves in the sell zone, forming downward bars.
Resistance levels: 1.3200, 1.3627.
Support levels: 1.3000, 1.2800.
The British pound is trading within a local downtrend against the US dollar, around 1.3025. Investors fear that the current decline in the GBP/USD pair is just the beginning of a long-term negative dynamics of quotations since the real fall in the asset may begin today when macroeconomic data on the UK economy is published.
Thus, according to analysts, GDP growth for February may slow down to 0.3% from 0.8% a month earlier and may drop to 9.5% YoY from 10.0% last month. Industrial production for the same period, according to preliminary estimates, will rise by 0.3%, well below 0.7% a month earlier. Similar data is expected from the manufacturing sector, which will correct only by 0.3% instead of 0.8%, shown in January.
Despite the pressure exerted on it, the US dollar index is trying to consolidate above the psychological mark of 100 points. During Friday's trading, it managed to test this mark, after which a sharp decline followed, and now the quotes are in the 99.800 area. Probably, today there will be another attempt to grow against the background of the expected speeches by members of the US Federal Reserve Open Market Committee, Raphael Bostic and Michelle Bowman, regarding forecasts for adjusting monetary policy parameters soon.
Support and resistance
The asset moves within the global downward channel, approaching the support line at 1.3000, which coincides with the year's low. Technical indicators keep a stable sell signal: indicator Alligator's EMA fluctuations range is quite wide, and the histogram of the AO oscillator moves in the sell zone, forming downward bars.
Resistance levels: 1.3200, 1.3627.
Support levels: 1.3000, 1.2800.