WILL GBPUSD RISE FURTHER?
The UK consumer price index stood at 0.3% in March, in line with expectations, while annual data pointed to an increase of 0.7%. March retail sales data showed an increase of 5.4%, above expectations. In particular, the loss of momentum in inflation compared to the previous month has created some tension on sterling assets. However, after the loosening of COVID-19 restrictions in the country, we see an increase in economic recovery. The relaxing effect of the dollar weakening somewhat and depreciating G-10 currencies is also being felt closely.
On the U.S. side, the week was calm, with applications for weekly unemployment benefits falling by 547,000 people yesterday, above expectations. We see a 3.7% contraction in existing housing sales. Following this development, the weak outlook for the dollar index for some time encountered a slight recovery movement, while gbpusd parity continued to move above 1.3855.
In the technical view of GBPUSD, if the stretching movement from 1.3855 raises the resistance of 1.3940, the rises can accelerate within the framework of resistance levels of 1.4020 and 1.41. However, if the support of 1.3855 is broken, it is worth noting the support levels below 1.3770 and 1.37.