Current trend
The British pound made an attempt at local growth due to the publication of positive macroeconomic statistics, which was offset by an increase in the US dollar. At the moment, the GBP/USD pair is trading around the level of 1.3185.
CPI rose by 0.8% MoM for February, which contributed to an increase in the annual rate to 6.2%. The core retail price index increased to 8.3% YoY, exceeding the January value of 8.0%. In general, the negative dynamics was predicted by analysts but they assumed that the February inflation would not be higher than 5.9%. Talking about estimates for a longer term, the figures are about 7.0% by the middle of the year, which will require serious steps from the Bank of England.
The US dollar index made a slight upward spurt, reaching 98.800 against the background of the rhetoric of several US Federal Reserve officials. Thus, Cleveland Fed Chairman Loretta Mester said she considers it reasonable to raise the interest rate to at least 2.5% by the end of this year since any other increase will not be able to cope with record inflation. Her colleague, the head of the San Francisco Fed, Mary Daly, also adheres to the rapid pace of adjusting the value but believes that it will be enough to sharply raise the rate by several levels at once, after which economic growth and consumer prices will stabilize.
Support and resistance
The GBP/USD pair move within the global downward channel and, reversed at the support line, are heading upwards. Technical indicators keep a sell signal: indicator Alligator’s EMA fluctuations range remains wide, and the histogram of the AO oscillator is in the sell zone.
Resistance levels: 1.3259, 1.3513.
Support levels: 1.3100, 1.2900.
The British pound made an attempt at local growth due to the publication of positive macroeconomic statistics, which was offset by an increase in the US dollar. At the moment, the GBP/USD pair is trading around the level of 1.3185.
CPI rose by 0.8% MoM for February, which contributed to an increase in the annual rate to 6.2%. The core retail price index increased to 8.3% YoY, exceeding the January value of 8.0%. In general, the negative dynamics was predicted by analysts but they assumed that the February inflation would not be higher than 5.9%. Talking about estimates for a longer term, the figures are about 7.0% by the middle of the year, which will require serious steps from the Bank of England.
The US dollar index made a slight upward spurt, reaching 98.800 against the background of the rhetoric of several US Federal Reserve officials. Thus, Cleveland Fed Chairman Loretta Mester said she considers it reasonable to raise the interest rate to at least 2.5% by the end of this year since any other increase will not be able to cope with record inflation. Her colleague, the head of the San Francisco Fed, Mary Daly, also adheres to the rapid pace of adjusting the value but believes that it will be enough to sharply raise the rate by several levels at once, after which economic growth and consumer prices will stabilize.
Support and resistance
The GBP/USD pair move within the global downward channel and, reversed at the support line, are heading upwards. Technical indicators keep a sell signal: indicator Alligator’s EMA fluctuations range remains wide, and the histogram of the AO oscillator is in the sell zone.
Resistance levels: 1.3259, 1.3513.
Support levels: 1.3100, 1.2900.