Recent Performance:
Price Movement: The GBP/USD has been consolidating below the 1.3013 level. The pair experienced a 0.54% increase over the past week and a 2.86% rise over the past month.
Technical Analysis:
Support and Resistance Levels: Immediate resistance is identified at 1.3013. A decisive break above this level could indicate a continuation of the upward trend towards the 1.3433 high. Conversely, support is found at 1.2869; a decline below this point may lead to a deeper correction, potentially targeting the 1.2721 region.
Technical Indicators: The Relative Strength Index (RSI) on the daily chart remains near 60, suggesting continued buying pressure. Additionally, GBP/USD is trading above its 21-day Simple Moving Average (SMA) at 1.2903, serving as initial support.
Fundamental Factors:
Economic Events: The upcoming week features significant economic releases, including the US Nonfarm Payrolls (NFP) data and the Institute for Supply Management (ISM) Manufacturing PMI. These reports could influence the Federal Reserve's monetary policy stance and, consequently, impact the USD's strength.
Trade Policies: US President Donald Trump's announcement of a 25% tariff on imported cars and light trucks, effective April 3, has raised concerns about potential inflationary pressures and implications for economic growth. These developments may affect market sentiment and the USD's performance.