GBP/USD: consolidation near the level of 1.3060
Current trend
GBP/USD has been fluctuating in a wide range of 1.3045-1.3106 over the past three trading sessions, continuing to lose value after consolidating below the April 6 low at 1.3045 following the release of "hawkish" Minutes from the US Federal Open Market Committee (FOMC). At the moment, quotes are consolidating near the level of 1.3060.
The situation around Ukraine is still in the spotlight. Western countries continue to introduce new restrictions against the Russian economy, primarily aimed at reducing or completely banning energy imports. The export of high-tech equipment, cars and agricultural machinery is also noticeably limited. However, these measures have not yet brought the expected effect, since the special military operation continues. At the same time, the position of the Western authorities has become a catalyst for updating record highs in commodity markets, which threatens to increase inflation in many regions of the world. Against this background, British Prime Minister Boris Johnson said that the UK intends to use more fossil fuels and commission one new nuclear reactor per year in order to maintain energy security. In addition, the country's government intends to abandon imported oil and gas in order to avoid a rapid increase in energy tariffs in the future, so this autumn another round of distribution of licenses for the development of the North Sea shelf by British oil and gas enterprises will be held.
The macroeconomic statistics of the United Kingdom released the day before only confirmed the fact of a rapid increase in inflation: the Halifax House Price Index accelerated from 0.8% to 1.4% in March, while analysts expected a slowdown in dynamics to 0.4%.
Support and resistance
Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD indicator is trying to reverse upwards and form a new buy signal (the histogram is trying to consolidate above the signal line). Stochastic is showing similar dynamics, trying to retreat from the oversold area (below the level of "20").
Resistance levels: 1.3100, 1.3150, 1.3200, 1.3250.
Support levels: 1.3050, 1.3000, 1.2960, 1.2900.
GBP/USD has been fluctuating in a wide range of 1.3045-1.3106 over the past three trading sessions, continuing to lose value after consolidating below the April 6 low at 1.3045 following the release of "hawkish" Minutes from the US Federal Open Market Committee (FOMC). At the moment, quotes are consolidating near the level of 1.3060.
The situation around Ukraine is still in the spotlight. Western countries continue to introduce new restrictions against the Russian economy, primarily aimed at reducing or completely banning energy imports. The export of high-tech equipment, cars and agricultural machinery is also noticeably limited. However, these measures have not yet brought the expected effect, since the special military operation continues. At the same time, the position of the Western authorities has become a catalyst for updating record highs in commodity markets, which threatens to increase inflation in many regions of the world. Against this background, British Prime Minister Boris Johnson said that the UK intends to use more fossil fuels and commission one new nuclear reactor per year in order to maintain energy security. In addition, the country's government intends to abandon imported oil and gas in order to avoid a rapid increase in energy tariffs in the future, so this autumn another round of distribution of licenses for the development of the North Sea shelf by British oil and gas enterprises will be held.
The macroeconomic statistics of the United Kingdom released the day before only confirmed the fact of a rapid increase in inflation: the Halifax House Price Index accelerated from 0.8% to 1.4% in March, while analysts expected a slowdown in dynamics to 0.4%.
Support and resistance
Bollinger Bands in D1 chart demonstrate a moderate decrease. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD indicator is trying to reverse upwards and form a new buy signal (the histogram is trying to consolidate above the signal line). Stochastic is showing similar dynamics, trying to retreat from the oversold area (below the level of "20").
Resistance levels: 1.3100, 1.3150, 1.3200, 1.3250.
Support levels: 1.3050, 1.3000, 1.2960, 1.2900.
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