Today, on March 25th, the US Dollar is consolidating against the British Pound in advance of economic news from the UK. Before the European trading session, GBPUSD traded within the scope of the 1,6480 – 1,6485 price range. Market Leader asked Masterforex-V Academy about the near-term prospects of the currency pair and the news that can drive the price today.
According to the experts, today’s price move in the market of GPBUSD can be influenced by several factors, including the UK’s economic news block. This block includes the CPI data for February. The figures are expected to increase by 0,5% versus January’s figures.
Another economic report to pay attention to is the UK’s PPI for the same reporting period. The index is expected to gain 0,1% (m/m) and 5,5% (y/y).
Later toady, we are about to see another major economic report from Great Britain. This is going to be the retail sales report from the CBI for March 2014. This is the major indicator of consumer spending in the UK.
Meanwhile, Masterofrex-V Academy analyzed the technical situation in the market of GBPUSD (the H4 chart was used for that purpose).
The H4 chart indicates that the long-term bias is still bullish. At this point, the price is retracing in long-term perspective. This retracement is probably caused by the fact that big-scale players are taking profit in advance of the end of the financial year in the UK. Another factor, is the current overall strength of the US Dollar caused by the fact that the Fed keeps tapering QE3.
If today's UK news block comes out stronger than expected, the current price retracement in the market of GBPUSD may end. In this case, the price may well start rallying with targets at 1,6665 and 1,6743.
Alternatively, if the data match the forecasts or turn out to be worse than expected, the decline may well continue, especially if the price manages to break above the bottom of the MF sloping channel. In this case, the closest levels or support are 1,6382 and 1,6252.
