FX.co ★ Tote | GBP/USD

GBPUSD Price Trend: The GBP/USD pair has shown a comeback trend after a gradual decrease to settle at 1.33059 during the Asian session. Cable is trying to recapture the immediate resistance of 1.33359 since the US Dollar Index (DXY) has dropped after climbing as near as 102.65. Bearish bets on the US Dollar Index (DXY) have returned as concerns about the US financial crisis have subsided and there is a greater chance that the Federal Reserve (Fed) will stick to its current interest rate stance. Since the pound has gained sufficient strength, Bank of England (BoE) governor Andrew Bailey would hike rates even further if there was proof of persistent inflation. Because of the double-digit inflation rate in the UK, which is unlikely to drop very soon, the BoE will anticipate raising rates once again. For more guidance, investors will keep an eye on Friday's UK GDP figures. Consensus is that the UK's growth rate did not change in the fourth quarter of CY2022, with annual GDP estimates remaining steady at 0.4%. The UK economy went into a deep recession as a result of the combined consequences of weak growth and ongoing inflation. The GBP/USD currency pair saw minor losses early on Wednesday and is still down from an eight-week peak. For the first time in three days, the cable pair experiences a daily loss. Given the bearish Doji candlestick at the multi-day top and the almost overbought RSI (14), the GBP/USD pair is predicted to continue down. The upward-sloping support line from last Friday, which is now around 1.32809 as of press time, is unlikely to be the Cable pair's short-term decline. The GBP/USD bearish might be challenged by the 50-SMA and the March 24 low, which are around 1.32309 and 1.31709, respectively. The last line of defense for GBP/USD buyers is the 100-SMA level at 1.31109. If this level is broken, the mid-month bottom at the psychological magnet of 1.29809 will be prodded without hesitation. However, GBP/USD investors face resistance at a position around 1.33759, where the last support line from March 2018 and an ascending trend line that has been in place for two weeks are located. Even if the quote rises over 1.33729, a number of peaks that are anticipated in late 2025 and early 2026 and 1.34259–1.34364 seem to be challenging for cable pair buyers to overcome.