GBP/USD Forex Signal Today 21/04: Bullish Momentum (Chart)
Bullish view
- Purchase the GBP/USD pair and set a take-profit at 1.3425.
- 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 1.3425.
The GBP/USD pair continued its bullish momentum this yr because it jumped to its highest level since October final yr. It has risen within the final ten consecutive days, persevering with a pattern that began earlier this yr. It was buying and selling at 1.3295, up from the year-to-date low of 1.2105.
GBP surged after UK inflation knowledge
The GBP/USD pair continued rising even because the UK inflation knowledge confirmed that costs continued falling this yr. Knowledge confirmed that the headline client inflation rose at an annual price of two.6%, a lot decrease than the height of 11% in 2022.
In idea, such numbers would imply that the Financial institution of England (BoE) ought to begin reducing rates of interest quickly. Nonetheless, analysts anticipate that the financial institution will preserve regular rates of interest as inflation is anticipated to bounce again.
Some vital family payments on power, water, and council tax are anticipated to leap in April. Additionally, Donald Trump’s tariffs might assist to spice up inflation as corporations modify their costs.
The BoE has been reluctant to chop charges on this cycle even because the UK financial system has softened. Its justification is that increased rates of interest will result in extra inflation, triggering stagflation.
The GBP/USD alternate price has additionally jumped due to the continuing greenback sell-off. A more in-depth look exhibits that the dollar has plunged towards most currencies previously few weeks as traders query the protection of the US greenback because the commerce warfare continues.
Donald Trump additionally favors a weaker greenback since he believes that it’s going to make US exports cheaper overseas.
There will likely be no main financial numbers from america and the UK this week. Among the prime knowledge to look at would be the flash manufacturing and providers PMIs, which can come out on Tuesday.
GBP/USD technical evaluation
The each day chart exhibits that the GBP/USD pair has been in a robust uptrend previously few weeks. This rebound occurred after the pair bottomed at 1.2708, the Main S&R pivot level of the Murrey Math Traces instrument.
The pair has moved above the 50-day transferring common and the higher aspect of the ascending channel. Additionally, oscillators just like the Relative Energy Index (RSI) and Superior Oscillator have continued rising.
Due to this fact, the pair will probably proceed hovering as bulls goal the acute overshood level at 1.3427. This value coincides with its highest level in September final yr.
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