Perhaps investors just closed short positions before the long weekend
The pair GBP/USD finally stopped falling and rose up to 1.4180 but closed trading at 1.4151. The British pound was able to recover on a back of strong data on retail sales. However, we believe that the pair GBP/USD managed to reverse after Brexit comments.
In the UK, retail sales were better than expected: - 0.4% against expectations of -0.7%. In February mortgage, approvals totaled 45,9K against expectations of 47.8K. In January figure was revised.
Today Catholics have Good Friday. The US markets are not working, but since the Good Friday is not a federal holiday, the statistics will be published. The US will publish GDP for the 4th quarter in the final assessment, forecast unchanged 1.0%.
Taking into account yesterday's close of positions, we don’t expect strong movements today. On Monday, European countries will still rest, and the US markets will be open and we’ll get data on personal spending and home sales. Personal spending is expected to increase by 0.1%.
How to trade
The pair GBP/USD has support at 1.4076. The break of this level will allow the pair GBP/USD to descend to the area of 1.4042. We would buy PUT options if the pair falls below 1.4076. We would buy CALL options if the pair rises above 1.4156.
Expiry time: 21:00 GMT