GBP/USD Daily Forecast – 14 March

From the UK on Friday, Trade Balance data was published. The UK’s deficit on trade in goods and services was estimated to have been £3.5 billion in January 2016, a narrowing of £0.2 billion from December 2015. The narrowing is attributed to trade in goods where the deficit has narrowed from £10.5 billion in December 2015, to £10.3 billion in January 2016. This was in line with market forecasts. The narrowing of the trade in goods deficit between December 2015 and January 2016 reflected a decrease in imports of £0.2 billion to £33.2 billion attributed to falls in unspecified goods and fuels.

GBP/USD Daily Forecast – 14 March

Sterling continued its uptrend in the course of the session on Friday, even breaking above 1.44 handle, which is of course quite bullish sign, especially since there were no major  data release. After this huge move we can expect a bit of consolidation on Monday. Any type of supportive candles around 1.4350 level and 1.43 area, would be short-term buying signal, while resistive candles above 1.4450 and 1.4480 area in extension, would offer short-term buying opportunity. Read more...

GBP/USD Weekly Forecast – 14 March – 18 March

Sterling went back and forth in the course of the last week, with support around 1.41 handle and resistance above 1.43 area, but then broke higher on Friday, all the way to 1.44 handle. Pair was initially pushed lower, but followed euro move and after ECB and broke above resistance at 1.43 handle. Next week we would pay attention to UK job figures and BoE Meeting Minutes as well as Fed interest rate decision. Weaker than expected figures are likely to push pair all the way to 1.42 handle, while better than forecasted data would cause an incline and a break above 1.45 handle.

GBP/USD Weekly Forecast – 14 March – 18 March

Events that marked the week:

There were no data releases from the UK on Tuesday, but the focus was on boE Governor Carney testimony at the UK Treasury Committee. Bank of England (BoE) governor Mark Carney reiterated that the British central bank would not make a recommendation on the referendum scheduled for June 23 that would decide if the U.K. remains in the European Union (EU) or decides to leave the group, commonly referred to as “Brexit”, but that he would ensure actions to mitigate any short-term effects to financial stability.