COZfx: GBP/USD weekly outlook

[kiriss5678]

COZforex: The pound was little changed against the dollar on Friday as trade remained light with many markets closed for Good Friday.

GBP/USD hit a session high of 1.5219 on Friday, before settling at 1.5190, dipping 0.02% for the day and ending the week just 0.09% higher. Coz forex senior derivatives trader Daniel • Moloney said, GBP/USD is likely to find support at 1.5094, the low of March 27 and resistance at 1.5258, the high of March 25.

Demand for the dollar was underpinned following the release of better-than-expected US data on consumer sentiment and personal sending. The University of Michigan's consumer sentiment index came in at 78.6, up sharply from the preliminary

reading of 71.8, and above expectations for a reading of 72.5. A separate report showed that personal-consumption expenditures in the US rise 0.7% in February, the largest rose since September.

The data came one day after revised data showed that the US economy expanded at an annual rate of 0.4% in the three months to December, lower than forecasts for a 0.5% expansion. The growth rate was the slowest since the first quarter of

2011, but was higher than initial estimates for growth of 0.1%.

Sterling had gained ground against the dollar on Thursday after data showing that the UK services sector grew at the strongest pace in 5 months in January eased concerns over the risk of a recession.

The Office for National Statistics said UK service output rise 0.3% in January, the biggest rise since August, bringing the annualized rate of output to 0.8%. The report eased concerns over prospects for a triple-dip recession after previous

economic data showed that UK manufacturing output fell at the fastest rate in 6 months in January.

In the week ahead investors will be awaiting the outcome of Thursday's Bank of England policy meeting, although the bank is widely expected to leave monetary policy unchanged. The US is scheduled to release the closely watched government

report on nonfarm payrolls on Friday.

(COZ forex UK)