GBP/USD maintains its upward momentum towards 1.2500 despite an upbeat atmosphere.
As early as the morning in Europe, GBP/USD is maintaining its upward momentum and moving towards 1.2500. The pair is benefiting from an overall US Dollar decline and an improvement in risk sentiment. The BoE’s less pessimistic view could limit the major’s advances.
The GBP/USD pair has started the new week on a high note and has retraced towards 1.2500 after losing roughly 200 pips the previous week. The perception of risk may determine how the pair behaves for the rest of the day if there are no significant data releases.
In the latter half of the preceding week, GBP/USD remained under consistent bearish pressure as the US Dollar (USD) profited from flows to haven assets. Additionally, the cautious approach taken by the Bank of England (BoE) about further rate hikes and Governor Andrew Bailey’s upbeat remarks regarding the prospects for inflation added to the pressure on the pound sterling.
The improvement in market sentiment early on Monday prevents the USD from maintaining its momentum and helps the pair recover. The FTSE 100 Index of the UK is up 0.3% in the European morning, while the major indexes of Wall Street are still expected to open in the green, with futures for US stock indices rising between 0.3% and 0.4%.
Investors will closely monitor wage inflation data when the UK’s Office for National Statistics releases its March jobs report early on Tuesday.
GBP/USD TECHNICAL ANALYSIS DAILY CHART:
GBP/USD is currently trading in down channel.
GBP/USD is currently trading below 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting downtrend.
GBP/USD resistance is at 1.25078 & its immediate support level is 1.24422
HOW TO TRADE GBP/USD
GBP/USD is trading in an upward channel and trying to retrace upward. it is currently approaching a resistance zone, and if it breaks it, we might expect the upward movement to a second resistance.