- The 50-day moving average (DMA) and the downward trendline are important points of resistance for the GBP/USD pair.
- The GBP/USD rebound is helped by the actions of major central banks.
- Next week, everyone will be looking at the UK CPI data and the BoE rate decision.
GBP/USD bounces back from the 21-day moving average (DMA) at the psychologically important level of 1.2000. The dollar’s value went up after major central banks came up with plans to help it out of trouble.
The Federal Reserve (Fed), the Swiss National Bank (SNB), and the Bank of England (BoE) all stepped in with rescue plans, which calmed fears of risk caused by a lack of cash at some regional and international banks.
GBP/USD needs to go above the 50-day moving average, which is around 1.2125 right now, to keep its bullish bias. The Relative Strength Indicator (RSI) still shows that the market is going up.
If the pair breaks above the 50-DMA in a strong way, it could head towards the next point of resistance and the trendline that goes down from the high in January, which is at 1.2435. If GBP/USD breaks above the downward slope, it could reach the high from March, which was 1.2215.
As for how low it can go, the 21-day moving average is likely to stop it around Thursday’s low of 1.2025. If the pair breaks below the 21-DMA in a convincing way, it could find support at 1.1924.
At 1.1830, there is no more support. Before next week’s UK Consumer Price Index (CPI) and BoE announcements, all important levels are being watched.
GBP/USD: Daily chart
Source: Team CurrencyVeda