Superior broker technology provider since 2010
+1 (315) 675 1086 |

More Upside But Rally Could Take a Bre


The GBP/USD pair also reacted to the first day of bank earnings season. 

  • Buy the GBP/USD pair and set a take-profit at 1.2665.
  •  Add a stop-loss at 1.2350.
  • Timeline: 1-2 days.
  • Set a sell-stop at 1.2350 and a take-profit at 1.2275.
  • Add a stop-loss at 1.2450.

The GBP/USD exchange rate jumped to the highest point in over ten months as the US dollar sell-off intensified. The pair rose to a high of 1.2511, which was over 20% above the lowest point in 2022. Focus now shifts to important economic numbers from the UK that are scheduled for this week.

The GBP/USD pair jumped sharply last week after the US published key data and events. Inflation data published on Wednesday showed that the country’s headline consumer inflation continued dropping in March. It has now dropped in the past several straight months.

The pair also dropped after the Federal Reserve published its minutes on Wednesday. These minutes showed that some Fed officials supported pausing rates in the past meeting. They also warned about the state of the American economy as they signaled that a recession could happen this year.

Therefore, these events signaled that the Fed was nearing the end of its tightening cycle, which pushed traders to embrace a risk-on sentiment.

The GBP/USD pair also reacted to the first day of bank earnings season. On Friday, major banks like JP Morgan, Citigroup, and Wells Fargo announced that they had a great quarter as their revenue and profitability jumped. These banks benefited from higher interest rates and an influx of deposits after the collapse of Silicon Valley Bank and Signature Banks.

Other large banks like Bank of America, Goldman Sachs, and Morgan Stanley are expected to publish their financial results. Traders will focus on regional banks, which have been under intense pressure in the past few months.

The GBP/USD pair will also react to several important economic numbers from the UK. The Office of National Statistics (ONS) will publish the latest jobs numbers on Tuesday and inflation data on Wednesday.

The GBP/USD pair has been in a strong upward trend since September last year. As it rose, the pair formed an ascending triangle pattern that is shown in red. In price action analysis, this pattern is usually a bullish sign. It has also moved above the 25-day and 50-day moving averages. The pair has also risen above the 61.8% Fibonacci Retracement level.

Therefore, the pair will likely continue rising in the next few days as buyers target the key resistance point at 1.2665. The stop-loss of this trade will be at 1.2300.


Ready to trade our Forex daily analysis and predictions? Here are the best Forex brokers to choose from.


Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.