The British Pound is under the spotlight as it faced resistance to surpass the 1.2650 – 1.2685 range against the U.S. dollar. A further slip below the critical level of 1.2600 could lead GBP/USD towards the nearest support between 1.2500 – 1.2520. Adding to the pressure, GBP/USD’s recent fall below its 50-day simple moving average signals a potential escalation in selling momentum. A daily close beneath this indicator might accelerate declines, aiming for trendline support near 1.2600 and possibly the 200-day SMA around 1.2570. Conversely, a market rebound would see bulls challenging the 50-day SMA at 1.2675, with a break above possibly igniting a rally towards 1.2720 and, if sustained, to 1.2830.
Since November, EUR/GBP’s downtrend hints at a gradual recovery, with the pair testing resistance at 0.8575. A clear move above this level is necessary for the euro to secure a stronger rebound, targeting the 200-day SMA at 0.8610. Should resistance hold, support is expected at 0.8530, followed by the critical 0.8500 threshold.
In contrast, GBP/JPY has retreated from its peak above 191.00, now testing trendline support at 190.20. Bulls must defend this level to prevent further slides towards 188.50. A successful counterattack by buyers could challenge resistance at 191.30, with a breakthrough potentially setting the stage for a push towards the 193.00 psychological barrier and beyond.
The broader financial market also influences currency movements, highlighted by the U.S. Dollar Index’s advance following a GDP report indicating a 3.2% growth rate. Similarly, the EUR/USD pair faced downward pressure amidst a disappointing Euro Area Economic Sentiment report, affecting cross-currency dynamics and impacting GBP’s performance against fluctuating market sentiments and economic indicators.
Key Points: Eurozone GDP to grow 0.7% in 2024: Better first-quarter performance and inflation nearing ECB's 2% target boost outlook.…
Key Points: Dow Jones extended to eight sessions, marking the best week of the year, reflecting resilience in the US…
Key Points: Bitcoin price shows volatility, recently trading between $60,675 and $61,098, under technical resistance at $61,764. US Federal Reserve's…
Key Points: Oil Prices Drop: Brent and WTI fell by 0.3%, hinting at an economic slowdown. China's Mixed Data: Consumer…
Key Points: GBP/USD reaches 1.2520, boosted by the UK's impressive Q1 GDP growth of 0.6%, exiting a brief recession. Chief…
Key Points: EUR/USD Trading at 1.0770: Early Asian trading sees cautious investor stance ahead of US CPI data release. Contrasting…
This website uses cookies.