GBP/USD: outlook for April 24-28
The pound strengthened to its highest this year after UK Prime Minister Theresa May called for a snap election on June 8, seeking a personal mandate and parliamentary support to take her through tough Brexit talks. Then, it was stopped by 50-week MA having failed to rise higher. Towards the end of the past week, GBP/USD traded lower as it was understood that Tuesday’s upside had been a bit exaggerated by a market and that the uncertainty over upcoming election might put the pound under pressure.
Next week, global sentiment amid risks surrounding Korean peninsula and France will likely be a key driver of GBP/USD currency pair, as the economic calendar is light. On Tuesday, pay a closer attention to the US CP consumer confidence report. US unemployment claims and durable goods orders will be released on Thursday. In the end of the week, keep an eye on the British preliminary GDP, US final GDP, and Chicago PMI.
After the Tuesday’s peak to 1.2900, GBP/USD retraced to 1.2800. The consolidation phase is still intact. There is a little scope for extension towards 1.2910, 1.2950. Most likely, the prices will continue ranging within 1.2860 – 1.2660 levels within the next trading sessions. A break of the lower border of the range might send prices towards supports at 1.2615, 1.2420.
