GBP Gains Limited by USD

Market Analysis: The British Pound is drawing support from market expectations that the BOE will maintain elevated interest rates longer than its European counterparts, given the sticky inflationary pressures inside the UK. However, today’s upside potential will be heavily dictated by the US PPI release; a hotter-than-expected inflation print in the US could spark a sharp rally in the Greenback, effectively capping GBP’s gains in the global market.

Technical Outlook: On the 4H chart, GBPTHB is tracking a Sideway Up structure. The price has staging a short-term rebound to trade back above the EMA line, while the RSI approaches the midline to confirm fading selling pressure. This technical setup favors an extension toward the 44.14 – 44.20 resistance band, potentially amplified by a negative afternoon SET session. On the flip side, caution is warranted as the EMA line shows vulnerability of flattening down and the MACD signals a potential bearish cross, meaning a positive stock market could quickly trigger a pullback toward support.

Support Level : 43.94

Target : 44.14 – 44.18

Stop Loss : 43.92