. GBP/USD rebounds on corrective bounce - 27 April 2023

GBP/USD rebounds on corrective bounce – 27 April 2023

GBP/USD rebounds on corrective bounce – 27 April 2023

27 Apr 2023

GBP/USD remains cautious near 1.2400 amidst banking turbulence and positioning ahead of data.

  • GBP/USD recovers after experiencing its largest drop in eight days. The currency pair’s rebound is driven by factors such as the UK’s political crisis, concerns over the banking sector, and the absence of hawkish statements from the Bank of England, all contributing to a corrective bounce. While the market’s consolidation supports GBP/USD, the direction will depend more on upcoming factors such as US Durable Goods Orders and other risk catalysts.
  • Ahead of Wednesday’s London open, GBP/USD remains steady around the 1.2410-15 level, as bearish sentiment pauses following a significant daily decline. The recent stabilization is partly attributed to major central banks’ efforts to restore market confidence by reducing their operations involving the US Dollar, signaling that the financial market volatility observed last month has largely subsided, according to Reuters.

TECHNICAL ANALYSIS
In terms of technical analysis, GBP/USD faces a supportive trendline that has been in place for three weeks, effectively limiting any immediate downside around the 1.2400-2395 range. However, for a convincing recovery, buyers of the Cable pair would seek validation by surpassing the resistance posed by the 10-day Exponential Moving Average (EMA) at 1.2430.

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