GBPUSD fails to build after the recovery

US DOLLAR FORECAST – GBPUSD
- U.S. dollar displays rangebound behavior ahead of high-impact events on Friday
- US PCE data and Powell’s speech on Friday will be key for markets
- Thinner liquidity conditions are expected later in the week because of a bank holiday

The U.S. dollar, as measured by the DXY index, moved within a narrow range on Tuesday, displaying a lack of clear direction, but ultimately managed to eke out tiny gains. Mixed U.S. Treasury yields and a sense of caution among market participants contributed to the muted price action, with traders adopting a wait-and-see approach ahead of high-impact events on the U.S. economic calendar later this week.

The release of core PCE data on Friday is significant as it provides insights into consumer prices. Fed Chair Powell's speech on the same day will be closely watched for clues on the timing of the first rate cut of 2024. However, market reaction may be delayed due to the bank holiday and Easter Monday in Europe, causing investors to hesitate until a clearer picture emerges.

Forex trading during holidays may not be normal due to reduced liquidity, which can increase price swings. Even routine trades can disrupt the balance between supply and demand. It is advised to be cautious while trading in the upcoming days.

GBPUSD FORECAST - TECHNICAL ANALYSIS
GBP/USD failed to sustain its rebound from Monday and moved lower, unable to break above trendline resistance and the 50-day simple moving average at 1.2675. If this rejection is confirmed in the coming days, a retest of the 1.2600 level could happen soon, with further potential losses towards 1.2510.

On the other hand, if buyers step in and push the pair higher, there is resistance at 1.2675 and then at the key psychological level of 1.2700. Breaking through this technical barrier might be challenging, but a decisive breakout could strengthen upward momentum and potentially lead to a rally towards 1.2830.

Comment:

Comment:

GBP/USD still hanging at 1.2442 after UK CPI data

After the UK CPI was released higher than expected, GBP/USD increased from below 1.2420 to above 1.2440 and is currently still hanging at 1.2442.

Comment:

GBPUSD continues to accumulate below the 1.2500 mark

GBPUSD's upward momentum following yesterday afternoon's UK CPI report appears to have paused after testing the 100 hour MA. But at least the buyers have made an effort to break through this resistance in the short term. However, the pair remains blocked at Wednesday's peak near 1.2482.

In the short term, the price trend has turned neutral as the pair is stuck between the 100 and 200 hour MAs. Bulls are also moving towards minor resistance levels and bids are close to 1.2500. Overall, the rebound yesterday afternoon really didn't have much technical significance, and more momentum will be needed to reverse last week's sharp decline.

Comment:

GBP/USD breaks two-week high at 1.2500

GBP/USD rose to a two-week high of 1.2500 since April 12.

GBP/USD has had a pretty good run this week, especially after Monday's decline. The pair tested the 1.2300 level before bouncing back more than 200 pips to 1.2520.

The 38.2 Fib retracement level at 1.2526, now offers some minor resistance. Next is the 200-day moving average at 1.2559 which is a more important level to be cautious of in the coming days.

Comment:

GBP/USD's upward momentum is currently continuing and the pair is currently trading around 1.2500. The reason for the recent increase in the British Pound mainly comes from the latest economic data signaling that the BoE may have to keep interest rates at high levels for a longer period of time.