Free Forex Signals: GBPUSD April 2014
In this TCI analysis, we are going to investigate GBPUSD using the TCI Model, Statistics and Fundamental Updates. Based on statistics April is traditionally a good month for the British Pound against the US Dollar but on the contrary, May is the month for the correction regarding GBPUSD. Very important news and updates are expected from April 30th to May 8th, concerning both the US and the UK economy.
Forex Asset: GBPUSD
TCI Forecast: Possible Uptrend (↑)
Target Level: 1.7000
GBPUSD Macroeconomic Outlook
The British Sterling against the US Dollar is moving higher before important news releases and the BoE (Bank of England) meeting of the 8th of May 2014. The investor’s confidence in the British Economy is strengthening and that is clearly reflected on the course of the British Sterling in 2014. The concerns regarding the UK current account deficit are still here but the British Economy is continuing to grow and that is expected to be confirmed at the 1st quarter GDP report. Furthermore, the rising housing prices combined with rising wages in the UK may form the perfect environment for an interest rate increase towards inflationary concerns.
As concerns the US Dollar, be aware that a short period of very important announcements is commencing on the 30th of April and it is ending on the 2nd of May 2014. It is better to avoid trading the US Dollar during those days unless you know perfectly what you are doing.