GBPUSD edged back into the green Tuesday

Updated

GBPUSD ANALYSIS AND CHARTS
- GBPUSD edged back into the green Tuesday
- The UK’s March PMI saw upward revision, signaling the first growth in twenty months

The British Pound slightly rebounded against the US Dollar on Monday due to unexpected strength in domestic manufacturing. However, the Pound remains below last week's trading range against the Dollar, as strong economic data from the US pushed it down. The Institute for Supply Management manufacturing index rose to 50.3 in March, surpassing market expectations and indicating expansion in the sector.

The US Dollar gained against the Pound, driven by positive performance and the UK Purchasing Managers Index reaching its highest level in twenty months. The Dollar is expected to remain strong this week, with the Federal Reserve indicating a cautious approach towards interest rate cuts. Market focus will be on Chair Jerome Powell's comments and any potential impact on the Dollar.

The week will end with the US nonfarm payrolls release. March is expected to have seen 200,000 new jobs created, keeping the unemployment rate at 3.9%.

GBPUSD fails to build after the recovery

GBPUSD Technical Analysis
The very broad trading range seen since late November is starting to look more like a plateau on the path lower, even if, of course, that is far from confirmed so far.

The downtrend channel from the highs of March 8 looks far more solid, at least in terms of its lower bound and, if Sterling bulls can’t keep prices above that, a test of important retracement support at 1.2510 looks likely in the coming weeks. A durable break below that will take GBP/USD back into territory not seen since the end of last year and is likely to signal heavier falls.

For now, near-term resistance comes in at March 25’s opening low of 1.25894, with some pause in the downtrend likely of bulls can force the pace above this level.

Channel support lies at 1.25090.

Trade closed: target reached

Price is approaching the Resistance and Support zones as predicted🔥

Note

GBP/USD still hanging at 1.2442 after UK CPI data

After the UK CPI was released higher than expected, GBP/USD increased from below 1.2420 to above 1.2440 and is currently still hanging at 1.2442.

Note

GBPUSD mounted a moderate comeback on Wednesday

Note

GBPUSD continues to accumulate below the 1.2500 mark

GBPUSD's upward momentum following yesterday afternoon's UK CPI report appears to have paused after testing the 100 hour MA. But at least the buyers have made an effort to break through this resistance in the short term. However, the pair remains blocked at Wednesday's peak near 1.2482.

In the short term, the price trend has turned neutral as the pair is stuck between the 100 and 200 hour MAs. Bulls are also moving towards minor resistance levels and bids are close to 1.2500. Overall, the rebound yesterday afternoon really didn't have much technical significance, and more momentum will be needed to reverse last week's sharp decline.

Note

GBP/USD breaks two-week high at 1.2500

GBP/USD rose to a two-week high of 1.2500 since April 12.

GBP/USD has had a pretty good run this week, especially after Monday's decline. The pair tested the 1.2300 level before bouncing back more than 200 pips to 1.2520.

The 38.2 Fib retracement level at 1.2526, now offers some minor resistance. Next is the 200-day moving average at 1.2559 which is a more important level to be cautious of in the coming days.

Note

GBP/USD's upward momentum is currently continuing and the pair is currently trading around 1.2500. The reason for the recent increase in the British Pound mainly comes from the latest economic data signaling that the BoE may have to keep interest rates at high levels for a longer period of time.

Note

Contrary to expectations, Q1's positive GDP data had a rather limited impact on the value of the British pound and that alone is unlikely to impact the BoE's interest rate path, which still has many unknowns. GBP/USD only increased slightly by 0.06%, trading at 1.2531 at the time this article was posted.

Note

GBPUSD surpasses 1.2750 after UK CPI data turned hotter than expected

GBP/USD rose nearly 0.3% above the 1.2750 mark, its highest since March, after UK April CPI data came in higher than expected. Currently GBP/USD is trading around 1.2749, investors are aiming for 1.2790 and 1.2800.

Note

GBP/USD tetap menguat karena para pedagang meredam ekspektasi Bank of England (BoE) yang akan menormalisasi kebijakan pada pertemuan bulan Juni setelah mempertahankan sikap hawkish terhadap suku bunga selama lebih dari dua tahun.

Xayah_trading

🔰| Forex trading

🧩Get an average of 1200 pips per month
🧩Consulting on Risk Management
🧩Account management
🧩Forex signals have a high win rate

🚨🚨🚨FREE SIGNALS: t.me/+8q3AxDD9CsRjYzI1

Also on:

Related publications

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.