GBP/USD Forex Signal Today 04/03: Upward Momentum (Chart)
Bullish view
- Purchase the GBP/USD pair and set a take-profit at 1.2800.
- Add a stop-loss at 1.2600.
- Timeline: 1-2 days.
Bearish view
- Promote the GBP/USD pair and set a take-profit at 1.2600.
- Add a stop-loss at 1.2700.
The GBP/USD alternate price surged to its highest degree since December 12, up by about 5% from its lowest degree this yr. It rose to 1.2700, up from the year-to-date low of 1.2090, because the US greenback index crashed.
US greenback index crashes
The GBP/USD exchange rate continued its sturdy rally because the US greenback index plunged by over 1% within the American session. The greenback plunged as the chances of price cuts by the Federal Reserve.
These odds are evidenced by the efficiency of the US bond market as yields crashed. The ten-year yield dropped to 4.20%, its lowest degree since December 6, whereas the 30-year fell to 4.45%.
Falling bond yields is an indication that the market expects the Federal Reserve to begin slashing rates of interest now that the financial progress is softening. A monitoring determine by the Atlanta Federal Reserve estimates that the financial system could have a detrimental progress within the first quarter due to Donald Trump’s tariffs and Elon Musk’s job cuts.
The GBP/USD pair rose after the UK revealed encouraging financial numbers. In accordance with S&P World, the nation’s manufacturing PMI got here in at 46.9, larger than the median estimate of 46.4.
One other report by the Financial institution of England (BoE) confirmed that web lending to people rose to £5.9 billion in January, larger than the earlier £4.6 billion. Mortgage approvals rose to 66.2k, whereas mortgage lending rose to £4.2 billion.
The GBP/USD pair additionally rose after the blended financial numbers from the USA. The manufacturing PMI rose to 52.7 in February, whereas one other one by the ISM confirmed that the determine rose to 50.3.
GBP/USD technical evaluation
The GBP/USD pair continued its sturdy rally this week, reaching a excessive of 1.2707, its highest degree since December 17. It has soared from a low of 1.2090 because the US greenback index retreated.
The pair has moved above the 50-day and 100-day Weighted Shifting Common (WMA) and the 38.2% Fibonacci Retracement level. It’s approaching the 50% Fibonacci Retracement degree at 1.2765.
Oscillators just like the Relative Energy Index (RSI) and the MACD indicators have continued hovering, an indication that the pattern is strengthening. Due to this fact, the pair will doubtless proceed rising within the subsequent few days, with the following level to look at being at 1.2800.
