GBP/USD: outlook for April 3-7

GBP/USD: outlook for April 3-7

2019-11-11 • Updated

It’s official: Brexit has started! The British pound hit its 8-day low at 1.2370 on Wednesday after Prime Minister Theresa May triggered Article 50 of the Lisbon Treaty for moving out of the European Union. A tortuous process of negations with the EU on the terms of trade between Britain and the continent has begun. Towards the end of the week, GBP/USD managed to recoup its losses and surge towards 1.2550. The sterling benefited from US dollar’s weakness that came after Donald Trump said that his administration had started studying the ways to penalize the countries known for their currency manipulations.

The US efforts aimed at boosting the value of other currencies at the expense of greenback might be a major headwind for GBP/USD in the near term. Trump will meet Chinese President Xi Jinping on April 6-7 and the statements after this meeting will have a huge impact on USD.

In addition, next week, we will receive a plenty of economic releases from the both sides of Atlantic. Pay closer attention to the UK manufacturing and construction PMIs, monthly update of the Britain’s manufacturing production figures, as well as the US labor market data (NFP, average hourly earnings and unemployment rate releases are due on April 7). The EU-UK trade negotiations, upbeat US economic data and Fed’s hawkishness will make life harder for the sterling.

As GBP/USD approached resistance line from December 2016, it may feel pressure to visit lower levels. The key supports are lying at 1.2430 (50-day MA), 1.2380 (200-H4 MA) and 1.2300 on the way down to 1.2150 (support line from January lows).  On the upside, resistance is found at 1.2630/60 (200-day MA). We don’t recommend targeting higher levels on bullish positions.


Pound Sterling’s Foggy Future
Pound Sterling’s Foggy Future

Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera