GBP/USD Daily Price Forecast – The Cable Skyrocket Ahead Of Indicative Brexit Votes

GBP/USD started the day with a steep fall down following an uptick in the USD Index which computes the greenback against the six major currencies. After reaching the lower vicinity for the day, the pair followed a range bound movement. The cable pair remained between the support level of 1.3179 and the resistance level of 1.3191 after the plunge. The pair broke the till then sustained resistance level after a breakout from the 1.3169 support level at 03:30 GMT. From there, the GBP/USD gained strength, stayed in the consolidation mode for some time and continued a bullish track touching last day’s resistance level of 1.3230.

During the mid bracket of the day, the Confederation of British Industry had released the CBI Distributive Trades Survey for March. The result was pretty below the market expectation. The consensus had estimated around 5 percent prior to the previous zero percent, while the actual numbers came out as -18%. The pair showed slight correction in its movement in response to this low volatile event.

At the time of writing this article (13:05 GMT), the GBP/USD pair was trading at the day’s then high of 1.3246 level.

Key Event To Focus For The Day: UK Parliamentary Vote on Brexit

By 19:30 GMT, the UK Parliament will begin with the voting for an alternative to the May’s deal. There will be multiple ballots which will consist of numerous ideas for a deal Brexit. The MPs of the UK House of Commons will have to give their preferences from the among the choices provided.

Some of the alternatives include:

  • Customs union
  • Common Market 2.0
  • EFTA and EEA
  • Malthouse comprise plan A
  • Another referendum
  • Revoke Article 50

Ex-Foreign Secretary Boris Johnson told the BBC there was “no point” supporting Mrs. May’s deal “without any sign the UK is going to change its approach in phase two” of the negotiations – otherwise he feared the country getting indefinitely tied to the EU’s rules.

Today, the UK MPs will decide whether they agree to May’s deal Brexit or not. If they fail to approve her deal, then the odds for a hard Brexit rises multifold times. And if this happens, this can have a severe impact on the economy of both the parties. Hence, the outcome of today’s indicative voting session will have a significant influence on GBP/USD.

Technical Overview

GBPUSD 5 Min 27 March 2019
GBPUSD 5 Min 27 March 2019

The GBP/USD pair was trading above the Center Trendline of the Keltner Channel (KC) which denotes the Exponential Moving Average (EMA). The pair sustained between the upper band of the KC and the EMA which signifies of a strong uptrend. The Moving Average Convergence Divergence (MACD) clearly shows the signs of an uptrend with bullish confirmation during the mid-way of the upward rally. There were no signals of the uptrend breaking until 13:05 GMT.