GBP/USD Forex Signal Today 27/02: Pullback Risk (Chart)
Bearish view
- Promote the GBP/USD pair and set a take-profit at 1.2535.
- Add a stop-loss at 1.2800.
- Timeline: 1-2 days.
Bullish view
- Purchase the GBP/USD pair and set a take-profit at 1.2800.
- Add a stop-loss at 1.2535.
The GBP/USD alternate price continued its upward trajectory this week, reaching a excessive of 1.2685, its highest degree since December 18. It has rebounded by virtually 5% from its lowest degree this 12 months.
The GBP/USD pair has risen principally due to the continued efficiency of the US greenback, which has pulled again from the year-to-date excessive of $110 to $106 as some geopolitical dangers eased as others rose. For instance, the US is speaking with Russia on tips on how to finish the warfare in Ukraine, whereas Israel is in a ceasefire with Hamas.
The most important macro danger this 12 months has been Donald Trump, who has insisted that the US will transfer on with its tariff proposals in March. He desires to impose a 25% tariff on imported items from Canada and Mexico, a transfer that can invalidate the USMCA deal he signed into regulation in his first time period for the reason that two nations will reply by issuing tariffs of their very own.
There shall be no main financial knowledge from the UK on Thursday. Probably the most notable financial numbers will come out from the US, which is able to publish the most recent GDP and preliminary jobless claims knowledge. Economists count on the info to indicate that the economic system expanded by 2.3% within the remaining quarter of final 12 months.
Whereas the US GDP knowledge is a vital report, it’s going to don’t have any main affect on the pair as a result of it’s the second estimate and the market already is aware of what to anticipate.
The report may also not change the view of the Federal Reserve, which has hinted that it’s going to preserve larger rates of interest for longer due to the rising inflation within the nation.
GBP/USD technical evaluation
The GBP/USD exchange rate has continued its robust uptrend this month and moved to the best degree since December 18. It jumped above the 50-day transferring common and the Ichimoku cloud indicator.
The pair’s oscillators have continued rising, an indication that it has a bullish momentum. Nevertheless, it has additionally shaped a rising wedge sample, comprising two ascending and converging trendlines.
Subsequently, with the 2 traces nearing their confluence, there’s a danger that it’s going to have a bearish reversal within the coming days. If this occurs, the following degree to look at shall be at 1.2530, the 50-day transferring common.
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