GBP/USD recorded strong gains for a second straight week. The pair rose 0.79%, closing the week just shy of the 1.41 level. The upcoming week has six releases, including GDP. Here is an outlook for the highlights and an updated technical analysis for GBP/USD.
In the UK, GDP for Q1 slipped by 1.5%, close to the estimate of -1.6%. However, the March GDP report was positive, with a healthy gain of 2.1%, above the consensus of 1.5%. Manufacturing Production rose 2.1% in March, an 8-month high and above the forecast of 1.0%.
In the US, April inflation was much stronger than expected. Headline CPI (YoY) climbed 4.2%, up from 2.6% beforehand. PPI also climbed sharply, with a gain of 6.2%, up from 4.2% beforehand. Despite the surge in inflation, Fed members reiterated that there are no plans to taper the massive stimulus program.
Retail Sales for March (MoM) disappointed. The headline reading slowed to 0.0%, down from 9.8% in the previous release and shy of the estimate of 1.0%. Core Retail Sales contracted by 0.8%, down sharply from 8.4% and shy of the forecast of +0.5%.
GBP/USD daily chart with support and resistance lines on it. Click to enlarge: