The GBP/USD currency pair has notably consolidated around the 1.2800 level for two consecutive days as of Thursday. This phase follows the pair achieving its highest point since July 2023, closely approaching the 1.2900 mark. This bullish setup signals a potential uptrend, backed by expectations around central bank policies. Specifically, the anticipation that the BoE may sustain elevated interest rates for an extended period has supported the GBP. Simultaneously, investors are gearing up for the Fed’s likely reduction in interest rates in their June policy meeting, further fueling the bullish outlook for GBP/USD.
From a technical standpoint, the GBP/USD’s recent breakout above the 1.2750 resistance, now turned support, underscores a positive near-term forecast. Oscillators, maintaining positions in bullish territory, align with expectations of an upside for the pair. Looking at key levels, immediate support is spotted near the 1.2750 mark, with further support zones identified at 1.2700, 1.2680 (50-day SMA), 1.2600 (intersecting 100- and 200-day SMAs), and the YTD low around 1.2520-1.2515 noted in February. Conversely, resistance is initially found near the weekly high of approximately 1.2850-1.2860. This is followed by the 1.2900 landmarks, escalating to 1.2940-1.2945 and the significant 1.3000 psychological thresholds.
The prevailing strong bullish sentiment within global equity markets may curb the USD’s ascent, potentially favouring the GBP/USD pair’s upward trajectory. Influenced by central bank policy expectations and technical indicators, this environment sets the stage for a potentially lucrative period for bullish GBP/USD traders. Moreover, as market players adjust, anticipating central bank strategies and analyzing crucial technical levels becomes vital for forecasting the pair’s direction.
The GBP/USD pair is pivotal, bolstered by bullish setups and central bank expectations. The technical outlook supports the potential for further gains, with market sentiment and key-level analyses providing a comprehensive framework for traders and investors. As markets anticipate BoE and Fed actions, the GBP/USD pair, reflecting economic policies and technical analysis, remains key.
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