GBP/USD looking for the 1.43 handle as the week opens risk-on
|- Sterling opens the new week on the front foot, looking to add to last week's gains.
- A quiet day on the macro calendar leads to plenty of high-impact data for the rest of the week.
The GBP/USD is tending towards the high side in the early week's action, pushing into 1.4265 ahead of the European markets.
Last week's run-up in market tensions over Syria came to a head on Friday, and ended with a missile strike on Syria by the US, joined by the UK and France, in retaliatory strikes against Bashar al-Assad's embroiled government following a suspected chemical weapons attack on a Syrian neighborhood last weekend. Markets opened on a fairly positive note following revelations that the US is unlikely to devote resources for a protracted campaign in Syria, and markets have kicked off the new week by easing back and allowing risk appetite to seep back in.
Risk tone: well, so far so good, just another attack on Syria, market moves on . . .
Monday is a quiet day for the Cable, and the only notable action will be US Retail Sales at 12:30 GMT. The Retail Sales (excluding autos) for March are expected at 0.3 percent versus the previous 0.2, while the Retail Sales control group is expected at 0.4 percent against the previous 0.1. The Sterling's first real action of the week will happen on Tuesday, with quarterly Average Earnings at 08:30 GMT, both with and without bonuses. Average Earnings excluding bonuses is expected at 2.9 versus the previous 2.6 percent, while including bonuses is forecast at 2.6 percent versus the previous 2.8. Following that will be CPI figures for the GBP on Wednesday, which are expected to hold steady with the headline core inflation figures for March anticipated at 2.4 percent, in-line with the previous reading.
GBP/USD Weekly Forecast: Sterling at the crossroads of breaking higher in data busy week
GBP/USD Levels to consider
The Sterling has been weathering the recent risk aversion storms well for 2018, steady marking in higher highs as 2018 progresses, and as FXStreet's Chief Analyst Valeria Bednarik noted earlier, "the pair is technically bullish according to the daily chart, having closed around March's high, and well above a bullish 20 DMA, while technical indicators maintain their upward slopes well into positive territory. Shorter term, and according to the 4 hours chart, the positive momentum eased but the pair is far from signaling a downward move, as it continues developing above a bullish 20 SMA, while technical indicators ease within positive territory, the Momentum nearing its mid-line, but the RSI now consolidating around 62. The main bullish target continues being 1.4345 the highest since the Brexit referendum established last January."
Support levels: 1.4180 1.4150 1.4115
Resistance levels: 1.4295 1.4345 1.4390
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