Recent Performance:
Price Movements: The GBP/USD pair reached a six-month high of 1.3207 before declining to approximately 1.2898. This fluctuation reflects market reactions to the recent U.S. tariff implementations and evolving trade dynamics between the United States and the United Kingdom.
Technical Analysis:
Support and Resistance Levels:
• Support: 1.2865, 1.2800
• Resistance: 1.3050, 1.3200
The pair is currently testing the support at 1.2865. A rebound from this level could suggest a continuation of the upward trend, whereas a breach below might indicate further downside potential.
Technical Indicators:
• Relative Strength Index (RSI): Near 55 on the 4-hour chart, indicating neutral momentum.
• Exponential Moving Average (EMA): The pair is positioned slightly above the 50-day EMA, suggesting a tentative bullish bias.
Fundamental Factors:
U.S. Tariffs: The recent implementation of U.S. tariffs on UK goods has introduced uncertainty, impacting investor sentiment and contributing to the pair's volatility.
Bank of England Policy: Market expectations have shifted, with an over 85% likelihood of an interest rate cut in May, which could influence the pound's performance.