GBP/USD Forex Signal Today 24/04: More Downside (Chart)
Bearish view
- Promote the GBP/USD pair and set a take-profit at 1.3100.
- Add a stop-loss at 1.3430.
- Timeline: 1-2 days.
Bullish view
- Purchase the GBP/USD pair and set a take-profit at 1.3430.
- Add a stop-loss at 1.3100.
The GBP/USD pair retreated because the latest rally took a breather. After initially surging to the essential resistance degree at 1.3427 on Monday, it has pulled again to 1.3265 because the US greenback index jumped.
US greenback index jumps
The GBP/USD pair has retreated because the US greenback index and American equities rebounded after falling sharply over the previous few days. The greenback index rose by over 1% to $99.65, whereas the Dow Jones and Nasdaq 100 indices rose by over 1%.
This efficiency was a response to latest statements by US officers. Donald Trump stated that he was not firing Jerome Powell, the top of the Federal Reserve. Such a transfer, coming after he unilaterally carried out tariffs on all nations, would have led to issues concerning the function of the US greenback as a safe-haven asset.
The GBP/USD pair additionally pulled again after the flash manufacturing and providers PMI numbers confirmed a drop to the contraction zone in April. The manufacturing determine remained at 44, whereas the providers determine dropped from 51.3 to 48.9.
These numbers raised the likelihood that the Financial institution of England will lower rates of interest within the subsequent assembly. The BoE has maintained a extra hawkish tone this yr, because it has persistently held the view that inflation is considerably greater than anticipated.
Hopes of a BoE charge lower rose after a press release by Andrew Bailey, the top of the central financial institution. He hinted that the financial institution might want to take the dangers to UK progress critically due to Trump’s tariffs.
The following key knowledge which will transfer the GBP/USD pair would be the US sturdy items, present residence gross sales, and preliminary jobless claims.
GBP/USD technical evaluation
The GBP/USD pair reached a excessive of 1.3427 this week, a notable degree that marked its highest level in 2024 and the intense overshoot level of the Murrey Math Traces device. It then dropped to 1.13267 as among the bullish traders took earnings.
The pair stays above the 50-day shifting common, whereas the Relative Power Index (RSI) has pointed downwards. Moreover, the BBTrend indicator has continued to drop and is nearing the zero line.
Due to this fact, the pair will doubtless proceed to fall to the psychological level at 1.3100 after which resume its uptrend within the coming weeks.
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