GBP/USD reversed directions last week and lost close to 1 percent. The upcoming week has five releases. Here is an outlook for the highlights and an updated technical analysis for GBP/USD.
- BRC Retail Sales Monitor: Monday, 23:01. The British Retail Consortium’s Retail Sales Monitor rose 9.5% in February. The upturn is expected to continue in March, with an estimate of 11.9%.
- GDP: Tuesday, 6:00. Monthly GDP is projected to show a gain of 0.5% for February, after a reading of -2.9% beforehand.
- Manufacturing Production: Tuesday, 6:00. The indicator declined by 2.3% in January, its first decline in nine months. An upturn is projected for February, with a consensus of 0.5%.
- BOE Credit Conditions Survey: Thursday, 8:30. The Bank of England’s quarterly report details lending conditions and investors will be interested in the bank’s view of the economy, as health restrictions continue to be lifted. The survey provides projections for the next three months.
- CB Leading Index: Thursday, 13:30. The index, which is based on 7 economic indicators, declined by 0.4% in January. Will we see an improvement in the upcoming reading?
Technical lines from top to bottom:
We start with resistance at 1.4036.
1.3944 is next.
1.3824 has switched to resistance after the pound sustained sharp losses last week.
1.3699 is an immediate line of support.
1.3582 (mentioned last week) is the final support level for now.
I am bullish on GBP/USD
The US dollar appears to have run out of steam, as US Treasury yields have retreated and the Fed remains in dovish mode. The UK government continues to lift health restrictions which is boosting economic growth.
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