Cup and Handle Pattern (Chart)

Bullish view

  • Purchase the GBP/USD pair and set a take-profit at 1.3430.
  • Add a stop-loss at 1.3200.
  • Timeline: 1-2 days.

Bearish view

  • Promote the GBP/USD pair and set a take-profit at 1.3200.
  • Add a stop-loss at 1.3430.

GBP/USD Signal Today 28/04: Cup and Handle Pattern (Chart)

The GBP/USD pair dropped barely after hitting the essential resistance degree at 1.3430. It dropped to 1.3310 because the latest US greenback crash paused after Donald Trump modified his thoughts on commerce and his ideas of firing Jerome Powell.

UK retail gross sales jumped in March

The GBP/USD pair dropped even after a report by the Workplace of Nationwide Statistics (ONS) confirmed that the UK financial system was doing effectively. UK retail gross sales rose by 0.4% in March, beating analysts estimates that they’d fall. This report indicated that UK retailers had their finest begin to the yr since 2021, with a 1.6% improve.

The outlook for the UK shopper is cloudy as Donald Trump tariffs begin to hit and family power payments rise. Some analysts imagine that these tariffs will result in increased inflation, whereas others anticipate them to be deflationary as China diverts items destined to the US to different international locations.

Analysts anticipate the Financial institution of England (BoE) to start out slicing rates of interest as quickly as in its assembly in Might. It hopes that the speed minimize will assist to supercharge the financial system. Apart from, many firms and shoppers cite excessive rates of interest as a key hindrance to progress.

The following key GBP/USD pair information will come out on Tuesday when the Convention Board publishes the most recent shopper confidence information. Analysts anticipate that the info will reveal a drop in confidence in April as shoppers adjusted to Donald Trump’s tariffs.

Trump delivered his Liberation Day speech earlier this month, saying sweeping tariffs in opposition to items from all international locations. The US is now charging a minimum of 10% tariff on all items delivered to the nation.

The pair additionally reacted to a press release by Donald Trump that he wouldn’t hearth Jerome Powell from the Federal Reserve.

GBP/USD technical evaluation

The each day chart signifies that the GBP/USD pair has been in a powerful uptrend over the previous few months, because it rose from a low of 1.2100 in January to a excessive of 1.3430 final week. Most significantly, the pair has shaped a cup-and-handle sample, with its higher aspect at 1.3431.

The latest pullback is a part of the formation of the deal with part. It stays above the 50-day transferring common, whereas the MACD indicator has remained above the zero line.

Subsequently, the pair will possible proceed rising, with the important thing degree to observe being at 1.3431, the higher aspect of the C&H sample. A transfer above that degree will level to extra features, with the subsequent degree to observe being at 1.3500.

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