Pound Intends to Keep Positive Momentum
Dmitriy Gurkovskiy | Apr 19, 2021 12:46
On Monday, April 19th, the British Pound is moving upwards against the USD.
This week, the United Kingdom is scheduled to publish a lot of macroeconomic reports. For example, the Unemployment Rate and the Average Earnings for February, as well as the Claimant Count Change for March. Also, there will be reports on CPI, PPI Input and Output, and the RPI.
In addition to that, investors should pay attention to the preliminary reports on the Manufacturing and Services PMIs for April.
Overall, the Pound is looking quite balanced and neutral, while investors are wisely using the current market conditions for buying.
As we can see in the H4 chart, GBP/USD is correcting and has already reached the closest correctional target. The structure of the previous wave suggests an extension towards 1.3870. After the correction is over, the asset may start the fifth descending wave to reach 1.3566 and then resume trading upwards with the target at 1.4400. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0 inside the histogram area. After leaving the area, the line may fall to break 0, thus boosting the price chart decline.
In the H1 chart, after completing the ascending structure at 1.3870, the asset is expected to consolidate at this level. If later the price breaks this range to the downside, the market may resume falling with the first target at 1.3715. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: its signal line is moving above 80, which suggests that the market is trading within the “overbought area” and may complete the ascending structure. In the future, there might be a new correctional decline on the price chart.
By Dmitriy Gurkovskiy, Chief Analysts at RoboForex
Disclaimer: Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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