- GBP / USD Outlook suggests solid consumer spending in the UK.
- Consumer confidence in the UK is submerged in April.
- The dollar returned his glow in the middle of alleviating American trade tensions.
GBP / USD Outlook suggests solid consumer spending in the UK. However, consumer confidence has fallen abruptly in April due to current global trading wars. In the meantime, the dollar remained strong because feeling improved for mitigating tensions between China and the US.
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The data published on Friday showed that sales retail in the UK rose by 0.4%, contrary to the initial estimates decreased by 0.3%. The jump was a sign that consumer spending was strong. However, analysts remain cautious in incoming data because they are waiting for the influence of Trump tariffs on the economy. The governor of color said on Thursday that he expects a significant impact on growth, especially from the US Trade War.
A special report on Friday, he discovered that consumer confidence sank in April. This is a sign that consumers expect hard times ahead. Consequently, the function remained dim.
Meanwhile, the dollar returned the shine after the reports discovered the mitigation of trade tensions between China and the US. China announced on Friday that it was ready to free certain American goods, including medical equipment, from tariffs. On the other hand, top American officials said they were ready to demolish tariffs in China to 50% and start negotiations.
GBP / USD Key events Today
Participants in the market do not expect any key issues of the US or Great Britain. Therefore, sales numbers in the UK will continue to vary.
GBP / USD Technical Outlook: Pump Pause to Replace 30-SMA
On the technical page, GBP / USD price is caught between 30-SMA and 0.236 FIB Reframed Level. Bears have the upper hand because the price below SMA. Recently, feeling moved when the previous postrend filled resistance 1,3401. Here, the bears turned bullocks and push the price below 30ths.
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The drop is paused at 0.236 FIB, allowing GBP / USD to reset recently broken SMA. If it keeps the company, the bears will need to break below the level of FIB and support from 1,3200 to confirm the new trend.
On the other hand, if the bulls are stronger, the price will be beaten above the SMA to resolve resistance to 1,3401. The break above this level will strengthen the bias bias, because it would result in higher high.
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