The bearish bias seen in previous sessions appears to have paused temporarily, giving way to a notable bullish momentum, which has driven gains of over 1% in the short term in favor of the British pound. Today’s White House announcement to temporarily pause tariffs on several previously threatened countries—excluding China, which could face tariffs of up to 125%—has weakened the U.S. dollar in the short term. This shift has allowed the British pound to regain ground, supporting a steady bullish bias in the GBP/USD pair.
Upward Channel
Since January 14 of this year, bullish strength has been dominant, forming a clear ascending channel that has repeatedly pushed the price above the 200-period moving average. Recent bearish swings have failed to break through the ascending trendline, which remains intact, making this bullish channel the most important formation to monitor for now.
TRIX
Despite recent declines in the TRIX line, the indicator continues to oscillate above the zero level. This suggests that buying momentum remains intact when averaging recent moving periods. As long as the TRIX line continues to hold above the neutral level, bullish strength may become increasingly consistent in the short term.
RSI
The RSI line is approaching the 50 level, which marks the neutral zone on the indicator. However, if a significant breakout above this level occurs, bullish impulses could become dominant in the market—potentially strengthening upward pressure on GBP/USD.
Key Levels:
By Julian Pineda, CFA – Market Analyst
Upward Channel
Since January 14 of this year, bullish strength has been dominant, forming a clear ascending channel that has repeatedly pushed the price above the 200-period moving average. Recent bearish swings have failed to break through the ascending trendline, which remains intact, making this bullish channel the most important formation to monitor for now.
TRIX
Despite recent declines in the TRIX line, the indicator continues to oscillate above the zero level. This suggests that buying momentum remains intact when averaging recent moving periods. As long as the TRIX line continues to hold above the neutral level, bullish strength may become increasingly consistent in the short term.
RSI
The RSI line is approaching the 50 level, which marks the neutral zone on the indicator. However, if a significant breakout above this level occurs, bullish impulses could become dominant in the market—potentially strengthening upward pressure on GBP/USD.
Key Levels:
- 1.29275 – Near Resistance: This level represents the recent weekly high. Bullish moves above this level could reinforce the short-term buying bias and lead to more sustained upward momentum.
- 1.27772 – Near Barrier: This level aligns with the 200-period moving average. Continued price action around this zone may lead to neutral consolidation and the formation of a short-term sideways range.
- 1.26183 – Final Support: This level corresponds to late February lows. A confirmed break below this support could signal the end of the current bullish channel.
By Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.