Britain's gross domestic product (GDP) growth slowed as expected, while the country's manufacturing sector rebounded, while GBP / USD remained stable between 1.3037 and 1.3122 before settling around 1.3085 at the time of writing in anticipation of a new developments regarding the Brexit impasse. From the United States, consumer prices rose more than expected with support from rising energy prices, and the US Federal Reserve announced the minutes of its meeting in March. Technically, if the pair drops below the 1.3000 psychological support, the bearish momentum will increase and we still prefer to sell the pair from every bullish bounce.
The global trade war has affected manufacturing sectors all over the world, but UK manufacturing data is on the rise. Industrial production rose 0.9% in February, following a 0.8% rise in the previous month. Last week, the PMI manufacturing index jumped to 55.1 at its strongest level in a year. The figures are certainly positive, but could be the result of storage as manufacturers prepare for shortages once Britain leaves the EU. At the same time, Brexit's extension expires on Friday, and both sides are keen to avoid Britain's no deal exit from the EU. Prime Minister May seeks to extend another short period. European leaders have proposed a longer period, perhaps a year, but many May Conservatives are likely to oppose that, who want to leave the EU as soon as possible. May is also holding talks with opposition leader Jeremy Corbin, hoping to find common ground to break the deadlock in parliament over Britain's exit from the European Union.
During the March meeting, the Fed announced that its balance sheet would be reduced to $ 15 billion in May and end in September. Currently, the Fed is cutting its balance sheet by $ 30 billion a month. The Federal Reserve has become more pessimistic in 2019, saying that the rate hike was not planned until 2020. Poor economic growth and low inflation expectations may prompt the Reserve Bank Board to cut interest rates, while faster growth and high inflation expectations could push it to resume raising interest rates. US President Donald Trump said last week he wanted the Fed to start lowering interest rates.
The most important support for the Sterling against the Dollar today: 1.3020, 1.2945 and 1.2875, respectively.
The most important resistance levels for the Sterling against the dollar today: 1.3135, 1.3200 and 1.3285, respectively.