Mar 29th Daily Analysis
Mar 29th Daily Analysis
GBPUSD
A likely higher print of UK inflation may force the BOE to come forward with one more interest rate hike in May. The BOE has increased its interest rates to 0.75% to combat the soaring inflation. The UK’s Office for National Statistics printed the yearly Consumer Price Index (CPI) at 6.2%, which was significantly higher than the market estimates and previous figures of 5.9% and 5.5%.
The overall trend for GBPUSD looks bearish. Price seems to have broken previous lows to the downside and there is a possible retest or corrective move to the support level of 1.13120. There seem to be possible confluences between the 50 EMA and the Fibonacci retracement level of 61.8 and 50.0 levels. The RSI and MACD are below the centre-line.
PIVOT LEVEL: 1.1320
In addition to the current geopolitical situation in eastern Europe, the latest COVID update in China is weighing the currency market overall. As the Japanese Yen hold, the Sterling pound remains to fall. This trend is affecting the GBPJPY cross which is showing a high probability of a free fall. Also weighing the quote could be the pair traders’ caution ahead of the UK’s monthly data dump.
The overall trend for GBPUSD looks bearish. Price seems to have broken previous lows to the downside and there is a possible retest or corrective move to the support level of 1.13120. There seem to be possible confluences between the 50 EMA and the Fibonacci retracement level of 61.8 and 50.0 levels. The RSI and MACD are below the centre-line.
PIVOT LEVEL: 1.1320
WTI Crude oil (US OIL)
The central bank must move “expeditiously” to combat inflation, Powell told the National Association for Business Economics conference, adding that bigger-than-usual interest rate hikes could be deployed if needed. Federal Reserve (Fed) policymakers will take the necessary steps to get inflation down even if that means increasing interest rates by more than 25 basis points at a meeting.
Technical analysis:
The overall trend for the Dow Jones is bullish. Price seems to have broken major highs and is currently on a corrective move to the support level of 34,180. The RSI and MACD are within the centre-line which could possibly lead to price continuation to the bullish direction.
PIVOT POINTS: 34150
