The GBP/USD has posted moderate losses last week, erasing gains from the previous week. This week has four events, as well as the GDP. Here is an outlook for the highlights, and an updated technical analysis for GBP/USD.
The Bank of England, which remained in neutral gear, the maintenance of the Official discount Rate to 0.25%, as expected. There has been no change of QE, which has remained at 645 billion pounds for the third straight release. The services sector is in free fall, as the Services PMI slipped to 13.4 in march, down sharply from 34.5 (a month earlier. There is no relief from the construction industry, the Construction PMI slowed to 8.2, a decrease of 39.3 points.
In the U.s., factory orders fell 10.3% in October, after a flat 0.0% reading a month earlier. The employment figures for the month of April were dismal. Unemployment claims are arrived at 3.16 million, a decrease of $ 3.8 million a week earlier. This brings the total to a staggering $ 33.4 million. The broker, who is going to give the payrolls recorded a fall record of $ 20.5 million in April, slightly below the estimate, or $ 22.4 million. The unemployment rate jumped to 14.7%, up from 4.4% a month earlier. Still, this beat the forecasts, or 16.0 per cent. There was some good news that wage growth rose to 4.7%, crushing the estimate, or less than 0.5 percent.
GBP/USD daily graph of the resistance and support lines. Click to enlarge:
- BRC Retail Sales MonitorOn : Tuesday, 23:01. The British Retail Consortium to the extent, or detail that has sputtered, with only one win in the last five months. The indicator declined by 3.5% in March, but it was better than the forecast, or -5.5 percent. The April forecast amounts to -15.0 percent.
- The GDPFrom : Wednesday, 4:30 pm. The quarterly GDP reading for Q4 2019 slowed down to 0.0%, down 0.3% in the previous quarter. The analysts are ready for a contraction, or 2.5%, in the 1st quarter, or by the year 2020. The monthly GDP showed that the economy contracted by 0.1% in February, and the estimate for August stands at a staggering -7.9%, as Covid-19, should have caused a huge shock to the British economy.
- Manufacturing And ProductionFrom : Wednesday, 4:30 pm. The indicator has accelerated to 0.5% in February, up from 0.2% a month earlier. This should be a disaster, with a weather forecast, or -6.0 percent.
- The RICS House Price BalanceFrom : Wednesday, 19:01. The Royal Institution of Chartered Surveyors, the indicator fell to 11% in March, after a good reading of 29% in February. The housing market is in trouble, and the estimate for the month of August amounted to about 25 percent.
Technical from top to bottom:
We begin with resistance at 1.2820.
1.2728 was a hero of the resistance since the beginning of March. 1.2616, this is the following.
1.2535 has strengthened in resistance as a result of the losses for the GBP/USD last week.
1.2420 (mentioned last week) has an immediate resistance at the moment. He could see the action at the beginning of the next week.
1.2330 is the provider of support.
The number of the round or the 1.22 that has provided support since the first week of April.
1.2080 is the protection of the symbolic 1.20 level. This is the last support line for now.
I remain bearish on the pair GBP/USD
Corvid-19 has been sent to the manufacturing and service industries are in shock, and for the first quarter, GDP is expected to show that the UK economy has been contracting. The U. s. dollar remains a safe haven for jittery investors, which could cause problems for the pound sterling.
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