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    GBP/USD stays firm against US Dollar on quieter market conditions

    Source Fxstreet
    Mar 27, 2024 19:23
    • GBP/USD edges up to 1.2632, navigating through thin liquidity and a light economic calendar on both sides of the Atlantic.
    • US Durable Goods Orders exceed expectations, while consumer concerns over inflation temper consumer confidence.
    • Market focus on Fed Governor Waller's upcoming speech and core PCE inflation data for potential rate cut insights.

    The Pound Sterling clings to gains of 0.05% against the US Dollar after hitting a daily low of 1.2605. Thin liquidity conditions prevail in the financial markets amid a shortened week in observance of Good Friday. At the time of writing, the GBP/USD trades at 1.2632.

    GBP/USD maintains slight gains in subdued trading, with investors awaiting key speeches and inflation data

    The economic docket on both sides of the Atlantic remains scarce, though the latest data from the United States (US) witnessed Durable Goods Orders rising 1.4% in February, above estimates of 1.1%. Other data showed that US consumer confidence missed estimates of 107, coming at 104.7 in March. Dana M. Peterson, Chief Economist at The Conference Board, commented, “Consumers remained concerned with elevated price levels, which predominated write-in responses.”

    Later, the Fed Governor Christopher Waller is expected to cross newswires at around 22:00 GMT. In Waller’s last speech, he said the Fed is in no rush to cut rates, which has sponsored a repricing of a less dovish Fed, as shown by the CME FedWatch Tool. Money markets see 70% odds for a 25 basis points interest rate cut by the Fed in June.

    Aside from this, GBP/USD traders are eyeing the release  of the Fed’s preferred measure of inflation, the Core Personal Consumption Expenditure (PCE) price index. If inflation edges lower, that could fuel rate cut speculations of the Fed, but the figures must be taken with a pinch of salt as Fed Chair Jerome Powell would speak at 15:30 GMT.

    Across the pond, traders are eyeing the release of the latest Gross Domestic Product (GDP) figures for Q4 on Thursday, along wth the Current Account numbers for the same period.

    GBP/USD Price Analysis: Technical outlook

    The GBP/USD pair has printed back-to-back spinning tops candles, suggesting indecision amongst investors. On the upside, the 100-day moving average (DMA) at 1.2639 caps the rallies of the Sterling, while the 200-DMA at 1.2589 acts as strong dynamic support for buyers. For a bullish resumption, a breach of the 100-DMA could expose the 50-DMA at 1.2678 before testing 1.2700. On the flip side, if sellers reclaim 1.2600 and the 200-DMA, look for a test of 1.2505, the November 14 high turned support.

    GBP/USD

    Overview
    Today last price 1.2632
    Today Daily Change 0.0004
    Today Daily Change % 0.03
    Today daily open 1.2628
     
    Trends
    Daily SMA20 1.272
    Daily SMA50 1.268
    Daily SMA100 1.2645
    Daily SMA200 1.2591
     
    Levels
    Previous Daily High 1.2668
    Previous Daily Low 1.2622
    Previous Weekly High 1.2804
    Previous Weekly Low 1.2575
    Previous Monthly High 1.2773
    Previous Monthly Low 1.2518
    Daily Fibonacci 38.2% 1.264
    Daily Fibonacci 61.8% 1.2651
    Daily Pivot Point S1 1.2611
    Daily Pivot Point S2 1.2594
    Daily Pivot Point S3 1.2565
    Daily Pivot Point R1 1.2657
    Daily Pivot Point R2 1.2686
    Daily Pivot Point R3 1.2703

     

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
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