GBP/USD Forecast: Dollar bulls taking over
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERGBP/USD Current price: 1.390
- UK encouraging data and soaring oil prices provided support to the pound.
- Soaring US Treasury yields after Powell’s speech sent the dollar skyrocketing.
- GBP/USD struggling around 1.3900 and at risk of falling further.
The British Pound was among the best performers against the greenback, surging above the 1.4000 level for the first time this week. UK data was encouraging, as the February Markit Construction PMI jumped to 53.3, better than anticipated. However, an unexpected boost came from soaring oil prices, which reached one-year highs following headlines indicating that the OPEC+ is reportedly close to agreeing to leave output unchanged in April.
However, US Federal Reserve chief Jerome Powell gave a boost to the dollar, cooling hopes for a soon-to-come rate hike, despite soaring yields. The GBP/USD pair retreated sharply from the mentioned high, losing the 1.3900 mark in the American afternoon. Friday will be a light day in terms of data for the UK, as the country will only publish February Halifax House Prices.
GBP/USD short-term technical outlook
The GBP/USD pair trades in the 1.3900 price zone, with a neutral-to-bearish stance in the near-term. The 4-hour chart shows that the pair spent the day hovering around its 20 and 100 SMAs, both lacking directional strength. The pair is now speeding down below them, favoring a bearish extension. The Momentum indicator is piercing its 100 level, while the RSI hovers around 42, indicating increasing selling interest. A strong support level is 1.3860, where the pair bottomed this week.
Support levels: 1.3860 1.3820 1.3770
Resistance levels: 1.3950 1.3990 1.4030
GBP/USD Current price: 1.390
- UK encouraging data and soaring oil prices provided support to the pound.
- Soaring US Treasury yields after Powell’s speech sent the dollar skyrocketing.
- GBP/USD struggling around 1.3900 and at risk of falling further.
The British Pound was among the best performers against the greenback, surging above the 1.4000 level for the first time this week. UK data was encouraging, as the February Markit Construction PMI jumped to 53.3, better than anticipated. However, an unexpected boost came from soaring oil prices, which reached one-year highs following headlines indicating that the OPEC+ is reportedly close to agreeing to leave output unchanged in April.
However, US Federal Reserve chief Jerome Powell gave a boost to the dollar, cooling hopes for a soon-to-come rate hike, despite soaring yields. The GBP/USD pair retreated sharply from the mentioned high, losing the 1.3900 mark in the American afternoon. Friday will be a light day in terms of data for the UK, as the country will only publish February Halifax House Prices.
GBP/USD short-term technical outlook
The GBP/USD pair trades in the 1.3900 price zone, with a neutral-to-bearish stance in the near-term. The 4-hour chart shows that the pair spent the day hovering around its 20 and 100 SMAs, both lacking directional strength. The pair is now speeding down below them, favoring a bearish extension. The Momentum indicator is piercing its 100 level, while the RSI hovers around 42, indicating increasing selling interest. A strong support level is 1.3860, where the pair bottomed this week.
Support levels: 1.3860 1.3820 1.3770
Resistance levels: 1.3950 1.3990 1.4030
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.