- BRC Retail Sales Monitor: Tuesday, 00:01. Retail sales in BRC shops slowed to 4.8% in December, down from 7.7% beforehand. Will we see a rebound in January?
- RICS House Price Balance: Wednesday, Tentative. The index has shown strong improvement in recent months, pointing to a stronger housing market. The upcoming estimate is that 60% of property surveyors will report an increase in house prices.
- Prelim GDP: Friday, 7:00. After the huge swings in GFP in the past two quarters, GDP is expected to show a negligible gain of 0.5%. An unexpected reading could affect the movement of GBP/USD.
- Manufacturing Production: Friday, 7:00. This indicator slowed to 0.7% in December, down from 0.7% beforehand. The downtrend is expected to continue, with an estimate of 0.5%.
GBP/USD Technical analysis
Technical lines from top to bottom:
We start with resistance at 1.4128, an important monthly line.
1.3917 is next.
1.3838 has held in resistance since May 2018.
1.3666 (mentioned last week) is the first support line.
1.3540 is next.
1.3470 has held in support since late December.
1.3327 is the final support level for now.
.
I am neutral GBP/USD
The UK economy is being hampered by Covid lockdowns, while in the US, the Biden stimulus bill could be bearish for the US dollar.
Further reading:
- EUR/USD forecast – for everything related to the euro
- USD/JPY forecast – projections for dollar/yen
- AUD/USD forecast – predictions for the Aussie dollar
- USD/CAD forecast – Canadian dollar analysis
- Forex weekly forecast – Outlook for the major events of the week
Safe trading!