GBP/USD Signal Today 22/04: Profit-Taking Likely (Chart)
Bearish view
- Promote the GBP/USD pair and set a take-profit at 1.3200.
- Add a stop-loss at 1.3500.
- Timeline: 1-2 days.
Bullish view
- Purchase the pair and set a take-profit at 1.3500.
- Add a stop-loss at 1.3200.
The GBP/USD trade charge surged to a key resistance stage because the latest sterling rally gained steam. It jumped to a excessive of 1.3425, its highest swing in 2024, which means it has jumped by over 10.5% from its lowest stage this yr.
Why the British pound is hovering
The GBP/USD pair has continued its robust surge this week. This rally has occurred due to the continuing US greenback sell-off. The US greenback index, a gauge that measures the efficiency of the foreign money in opposition to a basket of its friends, has dived from the year-to-date excessive of $110 to $98.
The greenback’s efficiency has diverged with that of different safe-haven property. For instance, gold has jumped to a file excessive of $3,350, an indication that traders and central banks see it as a greater haven.
The plunging greenback has additionally raised considerations on whether or not massive traders will proceed to carry US property. Certainly, US authorities bonds have bought off not too long ago, whereas prime indices just like the Dow Jones and Nasdaq 100 have lagged behind their European friends.
The primary reason behind this efficiency is Donald Trump’s insurance policies, that are nonetheless sending shockwaves around the globe. He has raised tariffs on imported items from different international locations, together with the UK.
Trump has additionally continued to criticize Federal Reserves Jerome Powell for not chopping rates of interest. There are additionally rumours that he could hearth him, an unprecedented transfer that has by no means been carried out earlier than. Such a transfer would seemingly be stopped by the Supreme Court docket.
The following key information to look at which will transfer the GBP/USD pair will probably be statements by a number of Fed officers like Raphael Bostic and Philip Jefferson. Most officers have hinted that the financial institution was not in a rush to chop charges, however had been able to interveneif the economic system slowed down.
GBP/USD technical evaluation
The every day chart exhibits that the GBP/USD trade charge has surged previously few months. It has jumped by double digits and moved to a hig of 1.3427, a vital stage that was its highest stage in 2024. It has fashioned what appears like a V-shaped restoration on this interval.
The pair even fashioned a golden cross sample because the 50-day transferring common moved above the 200-day MA. Additionally, the MACD and the Relative Energy Index (RSI) have stored rising.
Due to this fact, after hitting a key resistance stage, it’ll seemingly pull again as some traders begin to take earnings. If this occurs, the important thing level to look at will probably be at 1.3200. A leap above the resistance at 1.3425 will level to extra upside.
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