GBP/USD Rallies as US Dollar Falters
07 Jun 2023
As the US Dollar falters, the GBP/USD pair rallies towards 1.2450.
As the US Dollar once more moves downward during the European session, the GBP/USD is gaining ground towards 1.2450. Trading is still cautious due to British economic worries and in anticipation of UK Prime Minister Rishi Sunak’s visit to the US.
In the early hours of the morning in Europe, GBP/USD started to move upward, approaching the mid-1.2400s. The price of the pair is strongly opposed at 1.2440, and if that level is confirmed as support, the price may rise further.
Even though the GBP/USD exchange rate fell below 1.2400 on Wednesday for the third day in a row, it did so only briefly as the US Dollar (USD) struggled to maintain its momentum. However, the pair’s recent recovery appears to be supported by a technical reaction rather than any fundamental factors.
The US Census Bureau will publish the figures on the April goods trade balance in the second half of the day. The US economic docket will also include statistics from the Federal Reserve on changes in consumer credit. Prior to next week’s crucial inflation data and FOMC policy meeting, market participants are unlikely to base their positions on these numbers.
As a result, during American trading hours, the movements of GBP/USD may continue to be influenced by market perceptions of risk and technical developments.
After a little decrease during the Asian session, US stock index futures were essentially steady as of the time of publication. The GBP/USD might continue its recovery if the major Wall Street indices open in positive territory and go north, and vice versa.
GBP/USD TECHNICAL ANALYSIS DAILY CHART:
- GBP/USD is trading in an up channel.
- GBP/USD is currently trading above 5&20 SMA.
- RSI is in buying zone which suggests bullishness and Stochastic is suggesting a downtrend.
- GBP/USD resistance is at 1.24502 & its immediate support level is 1.23907
HOW TO TRADE GBP/USD
GBP/USD is currently trading in an upward channel after retracing its price. It is currently trading at a key resistance level, and if it is broken, the price will likely continue to rise.