On Wednesday, due to the publication of weak UK statistics, the upward movement of GBP / USD did not develop, and the pair is trading in a sideways range near the level of 1.3780.
GDP growth for the month amounted to only 0.4%, while the forecast was 0.6%. On an annualized basis, the indicator also fell short of the forecasted values, demonstrating (-7.8%) instead of (-7.3%). However? the volume of production in February increased by 1.0% against the expectation of 0.5%. In the manufacturing industry 1.3% instead of 0.5%.
The US dollar has lost its main support driver. Treasury yields stopped strengthening. USD sales strengthened yesterday after the release of consumer inflation data, which recorded an increase of 2.6%. After the release, a number of FOMC members made speeches, confirming the regulator’s intentions to maintain a super-soft policy, despite rising inflation expectations. Jerome Powell will speak on the same topic today.
On H4, GBP / USD is trading in a descending channel. Alligator mids are intertwined and give no cues. The awesome oscillator indicator crosses the zero line upwards and is also in a state of uncertainty.
With an upward movement of GBP / USD, you should wait for consolidation above 1.3823 and from here open position lengths with a take profit of 1.3996. We place our stop loss at 1.3770.
If the downward dynamics continues, we wait for consolidation below 1.3680 and open sells with a target of 1.3500. Stop loss is set at 1.3740.